UK seeks to establish 'closer economic relationship' with China, Ministry of Commerce responds

According to Bloomberg on the 18th, the UK Treasury has drafted a proposal to establish closer economic relations with China, with a focus on strengthening financial services and clean energy cooperation between the two countries. The Financial Times reported on the 19th that UK Chancellor of the Exchequer Reeves will lead a delegation of top bankers to Beijing next month, seeking to establish closer ties in the financial services sector.

Bloomberg reported based on a document seen and anonymous sources that officials from the UK Treasury are developing a draft proposal before Reeves' visit to China, which includes goals to promote two-way trade and investment between the UK and China, with a particular focus on banks in the City of London. A government official stated that the UK's policy has not yet been finalized and may still change before being announced. According to the above draft, as part of the resumption of the China UK Economic and Financial Dialogue, the UK will propose a commitment from both sides to expand the relationship between banks and financial service companies in both countries. The China UK Economic and Financial Dialogue mechanism was established in 2008 and was last held in 2019.

According to reports, informed sources also stated that the UK Treasury hopes to establish a working group between ministerial level officials from the UK and China to explore strengthening cooperation in a range of areas, including hosting a China UK capital market dialogue to expand two-way capital flow channels; Strengthen the connectivity between the financial and bond markets of the two countries; Explore the restoration of the Shanghai London Stock Connect, which was first proposed in 2015 but stopped in 2020, including the interconnection mechanism between the Shanghai Stock Exchange and the London Stock Exchange. In addition, the UK also hopes to establish a climate change forum led by ministerial level officials to promote cooperation between the two countries in clean energy, achieving net zero goals, and exploring carbon pricing, increasing investment in the energy industry and green technologies of both countries.

Since taking office, the British government has continuously strengthened its contacts with China. The British media has been continuously hyping up the so-called "spy case" between China and Prince Andrew, calling into question the efforts of the Labour government to restart UK China relations. We should conduct trade and seek investment in a manner that is in line with our national interests, "Reeves said on this issue this week, stating that the UK will adopt a" pragmatic "approach to handling relations with China.

Regarding the UK's plan to cooperate more with China in investment and trade, spokesperson for the Chinese Ministry of Commerce, He Yong, stated on the 19th that China attaches great importance to economic and trade cooperation between China and the UK. China is willing to expand mutually beneficial cooperation with the UK under the strategic guidance of the leaders of the two countries, help each other's economic and social development, and promote the stable and far-reaching global comprehensive strategic partnership between China and the UK in the 21st century. (Wang Huicong)