News story: Chancellor marks £600m of secure growth for UK economy in Beijing
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 to editors
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. Further details on the
methodology can be found here.
Stakeholder reaction Sir Mark
Tucker, HSBC Group Chairman said:
We welcome the fact that the
UK China Economic and Financial Dialogue – and the Financial Services
Summit – are taking place for the first time since 2019.
China
is the world’s second largest economy, the world’s top goods exporter,
second largest source of merchandise imports and the UK’s 4th largest
trading partner. Deepening the UK-China partnership on trade,
investment, finance, health, education and climate change amongst
other priority areas, is vital to delivering growth, investment and
high-quality jobs for both China and the UK.
Our focus is to
continue contributing to that ambitious agenda and to a mutually
beneficial programme of UK-China economic and financial co-operation
going forward.
José Viñals, Group Chairman of Standard
Chartered, said:
The UK-China Economic and Financial Dialogue
is both valuable and important to us and our clients. As a UK-
headquartered bank with a long history in China, we continue to see
significant growth potential and opportunities to collaborate, as
evidenced by the permission to trade China Treasury Bond Futures and
receipt of our Type A Bond Underwriting licence. Looking ahead, we
encourage further cooperation between our two markets and are
enthusiastic about what we, and partner financial institutions, can do
to help deliver impactful initiatives such as those in sustainable and
transition finance.
Richard Oldfield, Group Chief Executive,
Schroders, said:
China has long been an important strategic
focus for Schroders; we have been committed to the market for more
than 30 years having established our first office in Shanghai in
1994.
We are honoured to be supporting the UK-China Economic
and Financial Dialogue, further underscoring our commitment to
China.
Over the years, as the market has increasingly opened
up, we have been a leader in developing a compelling active investment
proposition in the region, grounded in strategic partnerships,
supported by a hugely talented team and strong public markets and
private assets capabilities.
More recently, we have started to
manage money invested into Chinese renewable infrastructure, enabling
our clients to meet their emissions targets through investing in high-
quality clean generation in China. It is the largest renewables market
in the world, and we are focused on enabling the transition from
fossil to renewable generation.
Lord Sassoon, President of the
China-Britain Business Council:
UK-China Economic and Financial
Dialogues have had a significant impact on generating investment, jobs
and profitable business for the UK over many years. The resumption of
the EFD is welcomed by our members, both in financial and professional
services, but also across the wider economy.
CBBC looks forward
to hosting a roundtable in Shanghai tomorrow at which British
businesses will share with the Chancellor what further market opening
and other support they need to grow their business with
China.
Miles Celic, CEO of TCUK:
This has been a
constructive, practical and ambitious gathering. The British and
Chinese financial and professional services industries have a clear
and growing role to play in deepening trade and investment between our
countries. In the process, we can help as both our societies adapt to
ageing populations and move towards Net Zero.
Sir Douglas
Flint, Chairman, abrdn;
The resumption of high-level
ministerial engagement after a gap of five years has been hugely
constructive to opening dialogue to explore and fulfil business
opportunities for mutual benefit.
Jonathan Eckley, Agriculture
and Horticulture Development Board (AHDB) Interim International Trade
Development Director, said:
China is our biggest market for pig
meat exports which offers significant opportunities for the UK. The
re-listing of two UK sites in December to export to China was an
incredibly positive end to 2024 and a great example of collaboration
between many stakeholders including government departments, industry
and AHDB.
The Economic and Financial Dialogue (EFD) illustrates
the further strengthening of our trade relationship with China which
we welcome, and we look forward to continuing working with government
and industry to explore opportunities for our sectors in this
important market.
Neil Willis, Cranswick PLC Director
said:
The relisting of UK Pork establishments is a positive
step forward and we welcome the effort made by the current UK
Government in resolving the approval situation at our Norfolk
facility. We look forward to continued collaboration and a proactive
approach to safeguarding market access and ensuring uninterrupted
trade relationships.
Alan Vallance, ICAEW Chief Executive,
said:
I am proud and honoured to have attended the Financial
Services Summit and I thank the organisers for their invitation to
attend.
Professional and business services have been identified
as a growth sector in the UK government’s industrial strategy, so we
are delighted by the commitment to accountancy and look forward to
working with the CICPA on mutual examination exemptions. Additionally,
we’ll continue to work in partnership with our counterparts in China
on common areas, like accountancy standards and sustainability, as
part of our work in the public interest.
We look forward to
working closely with both governments to help them deliver on their
ambition to unlock economic growth.
A spokesperson for the
British Poultry Council said:
We are thrilled to see the
Chancellor prioritising UK poultry meat in the Economic and Financial
dialogue with China. Launching discussions on lifting the HPAI ban,
introducing regionalisation, restoring trade in high-value breeding
stock, and resuming market access talks are key milestones for growth
in British poultry meat. These steps are set to drive innovation,
create jobs, and boost exports.
Contributing to food security
both at home and abroad, such talks reinforce the UK’s position as a
global leader in the sector. Thank you to the Agriculture, Food and
Drink Counsellor for your support, along with all the government
officials in Defra and DBT involved. Working together means building a
robust foundation for growth, ensuring the continued success of
British poultry meat.
A spokesperson for the Pet Industry
Federation (PIF) said:
The Pet Industry Federation fully
supports the UK government in committing to a pet food protocol that
would enable the export of UK pet food to China. We have seen first-
hand the significant enthusiasm from Chinese state officials to
facilitate these exports. This presents a major opportunity for UK pet
food manufacturers to access one of the world’s largest and fastest-
growing markets for pet products.
At present, several EU
countries and the USA are able to export pet food to China, which
gives them a competitive edge. By securing a similar agreement, the UK
can unlock substantial economic benefits, bolster the global
reputation of our pet food industry, and take advantage of the strong
demand for high-quality UK products overseas. We welcome the
Government prioritising this protocol to ensure the UK does not miss
out on this vital opportunity.
A spokesperson for UK Pet Food
said:
UK Pet Food welcomes the commitment to sign the pet food
protocol as part of the Economic and Financial Dialogue in China. This
fundamental agreement represents a major step forward in enabling UK
pet food manufacturers to access the Chinese market, reflecting the
sector’s commitment to producing high-quality, safe, and innovative
products. We are confident that this protocol will strengthen
bilateral trade relations and create significant opportunities for the
UK pet food industry.
By fostering partnerships with the
Chinese market, this agreement not only supports the growth of our
sector but also meets the rising global demand for premium pet food.
UK Pet Food is committed to working closely with the UK government and
industry stakeholders to ensure the protocol’s successful
implementation and to build long-term cooperation.
A
GlaxoSmithKline spokesperson said:
GSK supports the UK-China
Economic Financial Dialogue recognizing its importance in fostering
mutual growth in healthcare, getting ahead of disease by preventing it
with GSK innovative solutions.
A spokesperson for the
Association of British HealthTech Industries said:
To ensure
equity of access for patients around the world to HealthTech that
enhances and saves lives, regulatory harmonisation is a goal we fully
support.