Rachel Reeves h as defended Britain’s relationship with China, saying it would be “very foolish” to not have an economic relationshipo with the country. The Chancellor suggested a stronger partnership with Beijing was needed as opposed to creating barriers – which she maintained she would not do merely to appease Donald Trump in the wake of his tariffs.
She told The Telegraph: “Well, China is the second biggest economy in the world, and it would be, I think, very foolish, to not engage. That’s the approach of this Government.” Ms Reeves will travel to Washington next week to discuss a US-UK trade partnership and said entrepreneurs fleeing the US following the tariffs would be welcome to move their businesses to Britain. The Trump administration may threaten further tariffs on its trading partners as a way to force them to distance themselves from China, as per the Wall Street Journal.
Ms Reeves said a strong relationship with China was needed. (Image: Getty)
The outlet reported that Washington may not allow Chinese firms to relocate to avoid tariffs or import cheap goods from the country.
Ms Reeves said that she would not follow Mr Trump’s example, instead reiterating her belief in a strong relationship with Beijing.
She added: “I was in China earlier this year as part of an economic and financial dialogue. I had with me some of the biggest UK financial services firms, so HSBC, the London Stock Exchange Group, Standard Chartered, Prudential.
“We were there to improve the ability of the UK financial services firms to operate out of China. Getting more licences, more quotas for British businesses and a deal that I think was worth something like £600 million for the UK economy.
“Those sorts of arrangements are clearly in the UK national interest and that’s how I will approach trade talks or financial dialogues with any country in the world.”
However, the Chancellor said China would not be allowed to engage in some critical national infrastructure areas.
This comes amid the attempted nationalisation of British Steel, which would take ownership away from its Chinese parent company, Jingye, after it moved to close the two blast furnaces in Scunthorpe.
The move would also prevent China from funding the building of the Sizewell C nuclear plant in Suffolk.
The British Steel row angered the Chinese embassy in London, which slammed some MPs for their “arrogance, ignorance, and twisted mindset” and warned that future investment could be at risk.
