Reeves Warns Against Cutting Ties with China, Advocates for Stronger Economic Links

 

Chancellor Rachel Reeves has warned that it would be “very foolish” for the UK to sever or weaken its relationship with China, rejecting calls from former U.S. President Donald Trump to isolate Beijing economically. In an interview with The Telegraph, Reeves emphasized that Britain’s national interests lie in deeper economic cooperation, not in raising barriers.

 

 

“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,” Reeves said when asked whether she would reduce engagement with China to appease Trump.

 

Reeves’s remarks come amid ongoing tensions between the UK and China, including a diplomatic rift following the UK’s intervention in British Steel, previously owned by a Chinese firm. Despite this, Reeves is pursuing a strategy of economic pragmatism and aims to reset the UK’s relations with Beijing. Her comments come ahead of her visit to Washington next week, where a UK-US trade deal will be on the agenda, potentially putting her at odds with Trump-era trade hawks in the U.S. administration.

 

 

She also indicated a willingness to welcome U.S.-based entrepreneurs and businesses looking to relocate due to Trump's recent “liberation day” rhetoric and plans for new tariffs targeting Chinese products. “We would always welcome into Britain global talent,” Reeves stated, adding, “I want Britain to be the best place in the world to start and to grow a business.”

 

Reeves acknowledged the geopolitical sensitivities surrounding Chinese investment but clarified that the UK would continue to safeguard critical infrastructure. She cited the government's decision to take control of British Steel and the exclusion of Chinese investment from the Sizewell C nuclear plant as examples. “Those are areas of critical national infrastructure where the Government is right to intervene,” she said, speaking from the British Steel site in Scunthorpe.

 

She also addressed the controversy surrounding the proposed listing of Chinese fashion giant Shein on the London Stock Exchange, amid allegations of forced labour, which the company denies. “Those are decisions for the Financial Conduct Authority and the London Stock Exchange Group, but they’ve got very strict standards about disclosures, for example. But we do want to welcome new listings onto the London Stock Exchange,” she said.

 

When asked again if she would support a Shein listing if regulators approved it, she added, “We have lost business and we have lost companies in recent years and we’re working closely with the London Stock Exchange to make the UK a more vibrant place to list.”

 

Reeves also dismissed concerns over riding in Chinese-made electric vehicles. “I think we’ve probably all been in a taxi in London and they are produced by a Chinese company there. They’re produced in Britain, but the owner is a Chinese company. I think that those London electric taxis are a good thing. They’re very popular with taxi drivers as well. I wouldn’t be worried about going in one of them,” she said.

 

Despite the diplomatic challenges, Reeves remains committed to economic engagement with China. “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,” she explained. She said the agreements made during that trip were worth around £600 million to the UK economy and demonstrated how such engagements are clearly in the national interest.

 

Reeves’s stance reflects the wider direction of the current government, with several high-level visits to China by UK officials, including Foreign Secretary David Lammy, Energy Secretary Ed Miliband, and Trade Minister Douglas Alexander. These trips are seen as paving the way for a potential visit by Prime Minister Sir Keir Starmer, who recently held a phone call with Chinese President Xi Jinping.

 

The Chancellor will meet Trump’s trade secretary Scott Bessent during her Washington trip to discuss a UK-US trade deal, pushing for the removal of the 10 per cent blanket tariff on UK imports. She firmly denied suggestions that aligning with EU food and farming standards would undermine UK trade ambitions with the US. “Let’s just be clear, we have exactly the same food and farming standards as the EU,” she said.

 

 

On welcoming wealth and innovation from overseas, Reeves reiterated, “Pay their taxes and employ people in Britain. I don’t think anyone’s going to argue with that. I certainly am not going to.”

 

Adpated by ASEAN Now from The Telegraph  2025-04-21

 

 

1 hour ago, Social Media said:

“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,” Reeves said when asked whether she would reduce engagement with China to appease Trump.

 

Let's be honest, Labour want the UK to become a socialist ultra authoritarian state with zero freedom of speech and a huge, overbearing government just like China.

 

It's no surprise they want to "engage". Starmer and Xi is a marriage made in heaven. 

 

 

 

 

Smart move.

 

Perhaps the UK has learned something from its own loss of global supremacy.

 

The American Century is in its death throes, the UK is right to do business with it’s undeniable successor.

 

 

 

1 hour ago, JonnyF said:

Let's be honest,

Lets not lie. It's a case of follow the money, and its flowing out of the US in droves at the moment. #Isolationism.

13 minutes ago, Chomper Higgot said:

Smart move.

 

Perhaps the UK has learned something from its own loss of global supremacy.

 

The American Century is in its death throes, the UK is right to do business with it’s undeniable successor.

 

 

 

Yep cozy up to China, amazing move 

 

China given access to half a million anonymised NHS GP records

https://www.thetimes.com/uk/healthcare/article/china-access-nhs-gp-records-uk-biobank-88wb609g6

https://archive.ph/LeoVx

 

China warns UK not to ‘politicise’ trade

https://www.telegraph.co.uk/politics/2025/04/14/politics-latest-news-british-steel-keir-starmer-china/

https://archive.ph/2x8aX

22 minutes ago, Chomper Higgot said:

The American Century is in its death throes, the UK is right to do business with it’s undeniable successor.

 

You appear to be getting confused between what you want to happen and what is going to happen.

 

Your communist authoritarian utopia will not come to the UK by cosying up to the dictator Xi. 

 

 

1 hour ago, JonnyF said:

 

You appear to be getting confused between what you want to happen and what is going to happen.

 

Your communist authoritarian utopia will not come to the UK by cosying up to the dictator Xi. 

 

 

Even after truncating my post to remove  it’s full context you still failed to find an argument to address the lint I made.

 

 

10 minutes ago, Chomper Higgot said:

Even after truncating my post to remove  it’s full context you still failed to find an argument to address the lint I made.

 

 

 

Much as Liberals have been trying their best, they are far from damaging the West beyond repair.

 

Sure they've done an awful lot of damage, but now Dr. Trump is in town, ready to remove the cancer of Leftism and the Woke mind virus. 

The UK has one major problem. It depends on foreign investment. It wants Chinese money. To buy its IOUs, to invest. For decades the British have depended on Russian, Japanese, Chinese money, and now the situation has become critical. Some predict that in  6 months Britain may be unable to pay its debts. Unless they find a white knight...like China.

 

Reeves is hoping someone will bail her out for her failed policies.

 

https://www.telegraph.co.uk/business/2025/01/25/britain-is-on-the-brink-of-a-full-blown-fiscal-crisis/

9 minutes ago, Cameroni said:

The UK has one major problem. It depends on foreign investment. It wants Chinese money. To buy its IOUs, to invest. For decades the British have depended on Russian, Japanese, Chinese money, and now the situation has become critical. Some predict that in  6 months Britain may be unable to pay its debts. Unless they find a white knight...like China.

 

Reeves is hoping someone will bail her out for her failed policies.

 

https://www.telegraph.co.uk/business/2025/01/25/britain-is-on-the-brink-of-a-full-blown-fiscal-crisis/

Foreign investments are boon not a bane for UK or for any countries. How’s foreign investment a major problem. UK financial problem stemmed from a combination of factors including cost of living crisis, high inflation, Brexit related labor shortages and low wage growth.

 

50 minutes ago, Eric Loh said:

Foreign investments are boon not a bane for UK or for any countries. How’s foreign investment a major problem. UK financial problem stemmed from a combination of factors including cost of living crisis, high inflation, Brexit related labor shortages and low wage growth.

 

 

Indeed foreign investment is a benefit, however, if you ONLY or disproportionately depend on foreign investment, if you have no manufacturing of your own, but depend on Toyota, BMW, KIA etc opening factories in your country to provide jobs, then you are in trouble. 

 

Foreign investment in the UK has fallen dramatically.  Of course the UK economy has many problems, but one of its key issues is dependence on foreign money. 

 

"38% of all turnover of non-financial businesses in Britain went through foreign owned companies."

 

"I don’t think even Thatcher would have imagined that a quarter of British GDP would today be made up of sales of US multinationals like Amazon, Coca-Cola, Goldman Sachs and Uber. What that means is that key decisions are being made elsewhere, intellectual property is often held overseas, profits are extracted and taxes not paid here."

 

 

https://www.theguardian.com/commentisfree/2025/mar/06/britain-us-uk-assets-economic-disaster-labour

 

 

China has trade with many countries. None has turned Communist. It would be like having trade with African countries and turning black. Ludicrous.

On 4/21/2025 at 3:53 AM, JonnyF said:

 

Let's be honest, Labour want the UK to become a socialist ultra authoritarian state with zero freedom of speech and a huge, overbearing government just like China.

 

 

Let's be honest, this is nonsense.

On 4/20/2025 at 7:03 PM, Social Media said:

She also indicated a willingness to welcome U.S.-based entrepreneurs and businesses looking to relocate due to Trump's recent “liberation day” rhetoric and plans for new tariffs targeting Chinese products. “We would always welcome into Britain global talent,” Reeves stated, adding, “I want Britain to be the best place in the world to start and to grow a business.”

Does everyone in Europe NEED to be shot, bombed or invaded before they act? China is the world's second largest economy and the #1 threat because it was allowed. STOP ALLOWING IT! 🥸

Why would ANY business want to start in "Jolly Old England" amidst you losing control of "The Empire". Winston has GOT to be turning in his grave, gnashing his stogy.

19 hours ago, RayC said:

 

Let's be honest, this is nonsense.

 

The evidence suggests otherwise.

5 hours ago, JonnyF said:

 

The evidence suggests otherwise.

 

Really?

 

Starmer might describe himself as a socialist but, apart from the bailing out and likely renationalisation of British Steel, I haven't seen many economic policies enacted by this government which could be described as 'socialist'.

 

An "Ultra authoritarian state with zero freedom of speech": If you were in the UK, you would be perfectly entitled to make your views known and I doubt very much that you would be told to be silent.

 

Unlike China, the Labour government does not operate a system of state capitalism; the UK is very much a market driven economy. When it comes to dissent, unlike China there is no risk of you - or anyone else for that matter -  being lifted off the street and taken away for re-education. 

 

Does the UK have a " ... huge, overbearing government just like China" as you claim? I'd say the evidence suggests otherwise.

 

11 hours ago, RayC said:

 

Really?

 

Starmer might describe himself as a socialist but, apart from the bailing out and likely renationalisation of British Steel, I haven't seen many economic policies enacted by this government which could be described as 'socialist'.

 

An "Ultra authoritarian state with zero freedom of speech": If you were in the UK, you would be perfectly entitled to make your views known and I doubt very much that you would be told to be silent.

 

Unlike China, the Labour government does not operate a system of state capitalism; the UK is very much a market driven economy. When it comes to dissent, unlike China there is no risk of you - or anyone else for that matter -  being lifted off the street and taken away for re-education. 

 

Does the UK have a " ... huge, overbearing government just like China" as you claim? I'd say the evidence suggests otherwise.

 

 

You appear to have missed most of the major news stories of the past 9 months. 😃

 

6 hours ago, JonnyF said:

 

You appear to have missed most of the major news stories of the past 9 months. 😃

 

 

Not at all. Just providing some realism rather than hyperbole.