The government hopes that UK Chancellor of the Exchequer Rachel Reeves’ visit to China will boost British growth by engaging with the world’s second-largest economy in a “pragmatic” way
Reeves’ visit follows the dialogue opened last year between Prime Minister Keir Starmer and President Xi Jinping at the G20 Summit in November 2024, the first between the two countries’ leaders in six years. At that meeting, Starmer emphasised the importance of a “strong UK-China relationship” for the benefit of both nations, underscoring the need for China and the UK to foster economic cooperation.
Joining the Chancellor on her visit – the first by a UK Chancellor in nearly a decade – to China were the Governor of the Bank of England, Andrew Bailey, and the Chief Executive of the Financial Conduct Authority, Nikhil Rathi. A senior business delegation also joined the Chancellor, including CBBC President, Lord Sassoon, as well as senior representatives from abrdn, Fidelity, HSBC, London Stock Exchange Group, Prudential, Schroders, and Standard Chartered.
The central focus of the Chancellor’s visit was the 11th UK-China Economic & Financial Dialogue (EFD), the first since 2019. Co-chaired by Chinese Vice Premier He Lifeng and the Chancellor, the EFD is a key mechanism for government-to-government bilateral exchange and communication and is expected to result in significant outcomes for British business.
Following the EFD on Saturday, 11 January 2025, a series of substantial outcomes were announced, covering a wide range of sectors and initiatives. We summarise below some of the key messages:
- Pragmatic cooperation with China will result in agreements worth £600 million to the UK economy over the next five years and sets a course to deliver up to £1 billion of value for the UK economy.
- New licences and quota allocations for UK financial firms such as HSBC, Schroders, abrdn and Aspect Capital have been granted, as well as initiatives to improve capital market connectivity, pensions (including the establishment of a UK-China Pensions Symposium on a regular basis), insurance and sustainable finance cooperation.
- A range of initiatives have been announced to cover better capital markets connectivity (including bond issues in the UK market), greater offshore RMB trading and hedging.
- In services, there are a range of commitments to address market access in China for law firms, engineers, and accountancy qualifications.
- There are also a number of commitments to improve people to people exchanges, including a new UK-China Chevening Financial Fellowship programme.
- The Ministry of Commerce (MOFCOM) and the Department for Business and Trade (DBT) agreed to convene the 14th UK-China Joint Economic and Trade Commission.
CBBC will ensure that it is central to these activities, offering its members the opportunity to be part of these vital exchanges.
“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,” the Chancellor said. “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.”
CBBC President, Lord Sassoon, said: “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 played a central role in the visit, including organising a roundtable for the Chancellor to meet with leading British companies in China and co-hosting a reception, bringing together UK and Chinese business representatives.
The government is explicit in its desire to build a platform for a long-term relationship with China that works squarely in our national interest – ensuring our economy has the broad base and resilient foundations for the growth that makes working people in every corner of Britain better off.
Commenting on Reeves’ visit to China, CBBC Chief Executive Peter Burnett said, “CBBC is delighted to see the 11th EFD underway after a break of some six years. Economic and business growth is a central mission for both the United Kingdom and China. We are confident that this dialogue will herald the start of a more stable and practical relationship between both countries and will build confidence for exports, investment, financial engagement and growth.”
