UK Chancellor of the Exchequer Rachel Reeves has made it clear that Britain will not cut economic ties with China, despite increasing pressure from the United States. Her remarks came just days before she travels to Washington to hold trade talks with U.S. officials from the Trump administration.
Reeves says disengaging from China would be a mistake
Reeves told The Daily Telegraph that it would be unwise to reduce trade with China. “Well, China is the second biggest economy in the world, and it would be, I think, very foolish not to engage. That’s the approach of this government,” she said.
This statement follows a report by The Wall Street Journal suggesting that U.S. officials are planning to use trade deals and tariffs to isolate China economically. Many worry the U.S. could pressure its allies, including the UK, to follow suit.
UK responds to Trump’s global tariff move
On Friday, Prime Minister Keir Starmer spoke with President Donald Trump for the first time since Trump announced new global tariffs. British goods were hit with a 10% tariff. However, some relief came as Trump later paused these tariffs for 90 days.
Reeves is expected to discuss the ongoing trade talks with the U.S. during her Washington visit. The UK government hopes an agreement to lower tariffs could happen within weeks or months. Reeves will also meet with U.S. Treasury Secretary Scott Bessent and attend IMF spring meetings with other global finance leaders.
Shein’s potential UK listing gets support from Reeves
Reeves also showed support for Chinese-founded fast-fashion company Shein possibly joining the London Stock Exchange. Shein, now based in Singapore, has previously faced criticism over its supply chains and labor practices. However, Reeves said the UK and its financial watchdogs maintain strict rules. “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,” she explained.
Concerns rise over Chinese investment in critical sectors
Her comments come shortly after the UK government used emergency powers to keep the British Steel plant in Scunthorpe running. The plant is owned by the Chinese firm Jingye, which has faced criticism for not ordering enough supplies to maintain the blast furnaces. That raised fears the furnaces could cool and stop production.
Some MPs have raised concerns about Jingye’s ties to the Chinese government. The Chinese embassy in London pushed back, accusing certain lawmakers of spreading “anti-China” views and having an “arrogance, ignorance and twisted mindset.”
Despite defending economic ties, Reeves stressed that Chinese investment in sensitive areas of national infrastructure would be blocked. She made it clear that while open to general investment, the UK would act to protect its critical assets.
