China and the UK are resuming economic and financial talks after a 6-year hiatus

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TAIPEI, Taiwan (AP) – China and Britain resumed economic and financial talks Saturday after a six-year hiatus during a visit by Britain’s Treasury chief to Beijing, as the UK’s Labor government seeks to reset strained relations with the world’s second-largest economy. .

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Rachel Reeves traveled to Beijing accompanied by a delegation of British business leaders and finance officials. He met with Chinese leaders including Vice Premier He Lifeng and Vice President Han Zheng.

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The two sides revived the China-UK Economic and Financial Dialogue – annual bilateral talks that have been suspended since 2019 due to the COVID-19 pandemic and deteriorating relations. London hopes the renewed talks will help reduce the barriers UK businesses face if they want to export or expand to China.

“Today marks a milestone in UK-China relations with the first Economic and Financial Dialogue between our countries for nearly six years,” Reeves said. He said the meeting showed the new UK government’s “commitment to promoting a stable, long-term relationship” with China and a desire to boost economic cooperation.

Britain wants to improve trade in areas such as sustainable finance, capital market connectivity, pensions and regulatory frameworks, and trade and investment, Reeves added.

“As part of this, it is important to prevent economic linkages that weaken our national security and economic stability,” he said.

The Deputy Prime Minister said that China and Britain should develop cooperation in trade and investment, clean energy, financial services, green economy, biomedicine, artificial intelligence and other fields.

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“We are willing to work with the UK to create a fair, just and non-discriminatory business environment and provide favorable conditions for foreign companies to invest and operate in other countries,” he said.

Sino-British relations have soured following a series of espionage allegations on both sides, China’s support for Russia in the war in Ukraine and the suppression of civil liberties in Hong Kong, a former British colony.

British officials say Reeves will also urge Beijing to end its material and economic support for Russia’s war effort in Ukraine and raise the issue of rights and freedoms in Hong Kong.

The delegation included Bank of England Governor Andrew Bailey and the CEOs of the UK Financial Conduct Authority and the London Stock Exchange Group. Senior executives from some of Britain’s biggest financial firms, including the group chairmen of HSBC and Standard Chartered, are included.

Reeves’ visit comes after Foreign Secretary David Lammy visited China in October and Prime Minister Keir Starmer met Chinese President Xi Jinping on the sidelines of the G20 summit in Brazil in November.

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It’s all part of a bid by Starmer, who was elected leader in July, to strengthen political and economic ties with China, the UK’s fourth-largest trading partner, according to the Treasury.

Officials said Starmer wanted a “proactive” way to work with Beijing on global stability, climate change and the transition to clean energy. But some in the opposition Conservative Party criticized his stance and said trade ties should not come before national security and human rights concerns.

British political leaders and intelligence chiefs have repeatedly warned that China poses security threats. Calls to tackle the challenge intensified last month when it emerged that a Chinese spy allegedly had close ties to Prince Andrew and was carrying out “covert and treacherous activities” for China’s ruling party, according to officials.

“National security is at the core of what any government that serves the country will prioritize,” Reeves said. “But we must make sure that we have good relations with international countries. That benefits our country.”

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Associated Press writer Sylvia Hui in London and video producer Caroline Chen in Beijing contributed to this report.

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