Closer financial services links with China to support secure and resilient growth in UK as government's number one mission.
- Lifting of market access barriers across areas such as agri-food, helping British business compete on level-playing field and grow exports.
- Pragmatic cooperation results in agreements worth £600 million to the UK economy over the next five years and sets course to deliver up to £1 billion.
- The UK continues to challenge China on areas of disagreement, with the Chancellor raising concerns over China's support for Russia's illegal war, domestic interference and sanctions against British parliamentarians.
Working people and businesses across the UK will feel the benefits of agreements worth £600 million to the British economy, as agreed in the 2025 UK-China Economic and Financial Dialogue (EFD).
Chancellor Rachel Reeves was hosted by Vice Premier He Lifeng in Beijing today, in support of a stable and balanced UK-China relationship. Both sides agreed to deeper cooperation across areas such as financial services, trade, investment, and the climate to support secure growth, while being frank and open on areas of disagreement.
Overall, this government's reengagement with China sets us on course to deliver up to £1 billion of value for the UK economy.
Chancellor of the Exchequer Rachel Reeves said:
The agreements we've reached show that pragmatic cooperation between the world's largest economies can help us boost economic growth for the benefit of working people - a priority of our Plan for Change.
More widely, today is a platform for respectful and consistent future relations with China. One where we can be frank and open on areas where we disagree, protecting our values and security interests, and finding opportunities for safe trade and investment.
Britain is a leading financial services partner for China. A range of financial services companies with a substantial presence in the market - HSBC, Standard Chartered, Prudential, Schroders, abdrn, Fidelity International and London Stock Exchange Group - accompanied the Chancellor as a business delegation on the trip. The granting of new licences and quota allocations for UK firms such as HSBC, Schroders, abrdn and Aspect Capital to enhance their business in China will further strengthen these ties.
Alongside this are initiatives to improve capital market connectivity - including a commitment to further enhance the UK-China Stock Connect and welcoming the launch of UK-China over-the-counter bond business - as well as initiatives on pensions, countering illicit finance and sustainable finance cooperation.
As part of this, China announced plans to issue an inaugural overseas sovereign green bond - to be used to finance environmentally sustainable projects - in London during 2025. The UK and China will also explore a Wealth Connect programme in recognition of the role asset management has to play in supporting growth. The agreements today in financial services will provide significant value to the UK economy over the next five years.
Both sides have committed to improving existing channels to discuss more sensitive issues, including the need to speak candidly about national and economic security. In her engagement, the Chancellor made clear UK concerns about imbalances in the Chinese economy, and both sides agreed to discuss industrial policy in support of a global level playing field.
The UK and China have agreed to further cooperation including through strengthening the existing UK-China clean energy partnership and committing to a dialogue on international development - to work together in tackling shared global challenges.
The lifting of barriers that restricted export to China across a range of goods and services will support UK exports and innovation, particularly in the agri-food sector where a package headlined by pork, wool, poultry, and pet food stands to boost UK trade with China and support new jobs. China has also agreed to continue to liberalise sectors that restrict foreign investment, such as education and culture, and support a level playing field and fair competition.
The EFD is also part of a wider programme making substantive progress in improving arrangements for UK exports and investors. This is reflected in new agreements on vaccine approvals, fertilizer, whisky labelling, legal services, automotives and accountancy which set course for the EFD to unlock £1 billion of value for the UK economy.
In her meetings with Chinese government counterparts today, the Chancellor was clear on the importance of open channels on areas where we disagree. She urged China to cease its support for Russia's defence industrial base, which is enabling Russia to maintain its illegal war against Ukraine.
In recognition that upholding national security is this government's first duty, the Chancellor raised this government's deep concerns over cases involving interference in our democracy and malicious cyber activity emanating from China. Reeves also raised the case of British National Jimmy Lai and raised UK concerns around the respect of protected rights and freedoms in Hong Kong.
She raised human rights, including in Xinjiang, and forced labour. The Chancellor made clear that China's sanctions against Parliamentarians are completely unwarranted and unacceptable.
Looking ahead, regular dialogues and technical exchanges to progress pragmatic cooperation have been established. This includes further engagement at Ministerial and official level on trade, science and tech, intellectual property, customs, sports and creative industries.
Notes
- A full list of outcomes from the 2025 UK-China Economic and Financial Dialogue can be found here.
- The boost to trade includes estimates from the Department for Business and Trade and industry.
