Reeves in China Geopolitics may make return to 'golden era' of relations impossible

Rachel Reeves will fly with a delegation of City grandees to China this week as Labour seeks closer economic links with Beijing as part of its quest for growth.

- Heather Stewart

With the outlook rocky at home after a run of soft economic data, the chancellor is sorely in need of a positive story to tell. Reeves came under pressure to cancel the long-planned trip entirely amid the sell-off in the bond markets but Darren Jones, the Treasury chief secretary, said she would still go on the "important visit in terms of trends and investment".

Reeves appears determined to normalise the UK's relationship with the communist superpower, despite security concerns and a backdrop of geopolitical tension.

In the past few weeks alone, the UK has expelled an alleged Chinese spy and friend of Prince Andrew, Yang Tengbo, while the US Treasury has accused Beijing of hacking staff computers. Meanwhile, a lawyer for Shein - the online retailer founded in China and which is lobbying over a potential £50bn London float - was accused of "wilful ignorance" over its supply chain practices by British MPs.

At the same time, Beijing is expected to be at the sharp end of Donald Trump's aggressive trade policy, which could result in tariffs of up to 60% being slapped on all Chinese goods. Policymakers are contending with a rapidly declining yuan and a stock market sell-off.

Notwithstanding this inauspicious backdrop - and Beijing's problematic human rights record - Labour is making an effort to build bridges with China.

The foreign secretary, David Lammy, visited the country in October, and Keir Starmer had a face-to-face meeting with the Chinese president, Xi Jinping, on the sidelines of November's G20 summit in Rio de Janeiro.