UK's Reeves seeks ‘pragmatic' relations with China to boost trade

Chancellor of the Exchequer Rachel Reeves, facing criticism for travelling to China during financial market turmoil at home, said on Jan 11 that "pragmatic and predictable" relations with Beijing would help boost economic growth and trade.

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Under pressure from a sharp rise in British interest rates, Ms Reeves defended her budget at the start of the two-day visit to China, where she is seeking to revive high-level economic and financial talks that have been frozen since 2019.

"The fiscal rules that I set out in my budget in October are non-negotiable and growth is the No. 1 mission of this government to make our country better off," Ms Reeves told reporters after visiting a Brompton bicycle shop in Beijing.

"That's why I'm in China to unlock tangible benefits for British businesses exporting and trading around the world to ensure that we have greater access to the second-largest economy in the world."

The rise in British government borrowing costs, due in part to a global bond sell-off, prompted comparisons with the 2022 "mini-budget" crisis that forced then Prime Minister Liz Truss out of Downing Street.

However, this week's market moves have been less sharp and there has so far been no evidence of the strain on institutional investors that forced the Bank of England into emergency bond purchases in 2022.