As tensions between Washington and Beijing reach boiling point, Britain’s Chancellor Rachel Reeves is taking a different path—one that’s raising eyebrows on both sides of the Atlantic.
With the US tightening the screws on China through hefty tariffs and strong-arm diplomacy, Reeves is making it clear: she’s not here to burn bridges.
In a candid interview with The Telegraph, Reeves said it would be “very foolish” for Britain to cut ties with China, doubling down on her belief that a deeper partnership—not more barriers—is the right move for the UK economy.
Taking a Softer Line on China While America Plays Hardball
While President Trump is busy ramping up tariffs on Chinese goods—with the US slapping on a whopping 245% in retaliatory measures—Reeves is taking a more pragmatic approach.
Her message? Britain can’t afford to slam the door on the world’s second-largest economy, especially when it’s trying to steady its own ship post-Brexit and post-pandemic.
Instead of following America’s lead, she’s focusing on collaboration.
“I want to build partnerships, not walls,” she essentially said, signaling a sharp contrast ahead of her trip to Washington next week, where she’ll meet with US officials to talk trade.
A Different Kind of Deal: UK Open to Chinese Investments, With Conditions
Reeves isn’t just talking about diplomatic ties—she’s also been vocal about encouraging Chinese business activity in the UK, including welcoming new listings on the London Stock Exchange.
She’s even shown support for Shein, the Chinese fast-fashion giant, which is hoping to float in London despite ongoing controversy over alleged forced labor in its supply chains (allegations Shein strongly denies).
When asked if she’d personally back the float if regulators give it the green light, Reeves didn’t dodge: “We’ve lost too many companies and too much business in recent years. We want London to be a vibrant market again.”
No Fear of Chinese EVs as Reeves Talks Up Global Tech Collaboration
Reeves is also shrugging off fears of Chinese tech spying, saying she’d be perfectly happy riding in a Chinese-made electric vehicle.
In fact, she pointed out that London’s iconic black cabs are already built by a Chinese-owned firm right here in the UK.
Still, she’s not blind to the risks. Reeves made it clear that Chinese investments would be kept far away from sectors tied to national security or critical infrastructure.
“We’re open for business—but not at the expense of our safety,” she seemed to imply.
Fallout From Scunthorpe and British Steel Closures Fuels Debate
This friendlier stance on China comes at a sensitive time.
The UK has been grappling with backlash after Chinese-owned Jingye shut down two blast furnaces in Scunthorpe, sparking job fears and reigniting debates over foreign ownership of vital industries.
Some MPs want the government to put a stop to Chinese involvement in such sectors altogether.
Reeves, however, is steering the conversation toward future cooperation, especially after the UK took temporary control of British Steel.
Her tone is less about retaliation, and more about rebuilding trust.
A Rocky Track Record in China but Still Hopeful About Future Gains
Earlier this year, Reeves took flak for coming back from China with what critics called “next to nothing”—just £600 million in financial deals. Some Tories went so far as to label the trip a joke.
But Reeves has stood firm, pointing to partnerships she struck with major UK financial players like HSBC, the London Stock Exchange, and Prudential.
“These kinds of deals are absolutely in our national interest,” she explained.
“That’s how I’ll approach every trade or financial dialogue moving forward.”
Labour’s Full-Court Press on China Relations
Since taking office, Reeves has been part of a broader Labour effort to reset the UK’s relationship with China.
Foreign Secretary David Lammy, former minister Douglas Alexander, and Energy Secretary Ed Miliband have all paid visits to Beijing.
Prime Minister Keir Starmer even made history by speaking directly with President Xi Jinping—a rare move in recent British diplomacy.
A follow-up visit by Starmer could be on the horizon, and there are already plans for Reeves to host Chinese Vice Premier He Lifeng in London.
The message from Labour is clear: they want the UK-China relationship to be functional, not confrontational.
More Controversy Brewing Over China’s New ‘Super Embassy’ in London
Not everything is going smoothly, though. Plans for a massive Chinese “super embassy” near the Tower of London have been met with resistance, mostly over national security concerns.
President Xi has been lobbying hard for planning approval, but growing unease in Parliament has thrown the entire project into doubt.
Adding fuel to the fire, the Chinese embassy recently accused British MPs of having a “twisted mindset” and showing “arrogance” over their opposition.
Reeves Heads to Washington with Trade Tariffs High on the Agenda
With all this simmering in the background, Reeves is now gearing up for a major trip to Washington.
She’ll be attending a G20 summit and holding one-on-one meetings with key US figures, including Trade Secretary Scott Bessent.
And she’s not backing down when it comes to trade. Reeves says she’s still pressing the US to drop its blanket 10% tariff on British imports—a sticking point in ongoing UK-US trade talks.
Despite rumors that this issue has been sidelined, Reeves insists it’s still very much on the table.
What’s Next for Britain’s Global Trade Strategy?
As Britain tries to define its post-Brexit role on the world stage, Rachel Reeves is pushing for nuance in foreign policy.
While the US tightens the screws on China, she’s talking about balance, cooperation, and economic opportunity.
The real question now is whether her approach can survive the storm of global politics—or if the pressure from allies like the US will force a shift in strategy down the road.
