Maintaining pragmatic relations with China would be beneficial for the UK’s economic growth and trade, said British Finance Minister Rachel Reeves. She made this statement on Saturday (January 11) while facing criticism for her official visit to Beijing amidst instability in the UK’s financial markets, according to a report by Reuters.
In response to journalists’ questions, she stated that there is no room for compromise on the fiscal policies proposed in last October’s budget. The primary goal of the current government is Britain’s economic development.
The UK economy is already under significant pressure due to rising interest rates. At such a time, Reeves has faced criticism for her two-day state visit to China, during which high-level discussions on economic issues are scheduled to take place. For the first time in nearly six years, Beijing and London are set to engage in such talks.
Reeves said that the purpose of this visit to China is to expand British exports and trade markets globally. “Our main objective is to enhance access to the world’s second-largest economy,” she remarked.
The increased cost of government borrowing in the UK is being compared to the 2022 “mini-budget” crisis, which had forced then-Prime Minister Liz Truss to resign. However, the changes in the market this week have been relatively less severe, and the kind of pressure that compelled the Bank of England to purchase bonds on an emergency basis in 2022 has not been observed this time.
When asked by journalists whether London is considering imposing additional tariffs on Chinese electric vehicles, similar to Washington and Brussels, Reeves said, “Everything is under review.” She emphasized that British automakers like Jaguar Land Rover already have significant trade relations with China, and it is essential to create opportunities to expand their trade scope. Therefore, the final decision will be made based on national interest.