Improving Britain’s situation will be “at the forefront of the Chancellor’s concerns” during her visit to China, the Treasury has said, amid controversy over the trip.
Rachel Reeves soared on Friday after ignoring calls from opposition parties to cancel the long-planned project due to domestic market turmoil.
Last week saw a fall in the pound and an increase in government borrowing costs, which has fueled speculation about further spending cuts or tax increases.
The Conservatives have accused the chancellor of “fleeing to China” rather than explaining how she plans to address the stagnant British economy, while the Liberal Democrats say she should stay in Britain and announce a “plan B” to deal with market volatility.
The Chancellor visits a Brompton bicycle store in Beijing. Photo: AP
However, during a visit to British bicycle maker Brompton’s flagship store in Beijing, Ms Reeves said she would not change her economic plans, with October’s budget aimed at returning the UK to economic stability .
“Growth is the number one mission of this government,” she said.
“The fiscal rules set out in the budget are non-negotiable. Economic stability is the foundation of economic growth and prosperity.
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The Chancellor is accompanied by the Governor of the Bank of England Andrew Bailey and other senior executives.
She will meet her counterpart, Vice Premier He Lifeng, in Beijing on Saturday to discuss financial services, trade and investment, before traveling to Shanghai for talks with representatives of British and Chinese businesses.
It will also “raise difficult questions”, including Chinese companies support Russian invasion of Ukraine and concerns about constraints on rights and freedoms in Hong KongTreasury said.
But it was not made clear whether Ms Reeves would raise the issue. treatment of the Uyghur community, what a Downing Street said Foreign Minister David Lammy would do during his visit last year.
British Foreign Secretary David Lammy and Chinese Foreign Minister Wang Yi in Beijing. Photo: AP
Culture Secretary Lisa Nandy defended the trip on Friday, telling Sky News that the rising cost of government borrowing was a “global trend” that had affected many countries, “notably the United States”.
“We are still on track to become the fastest growing economy, according to the OECD (Organization for Economic Co-operation and Development) in Europe,” she said. Anna Jones on Sky News Breakfast.
“China is the second largest economy, and what China does has the biggest impact on people from Stockton to Sunderland, right across the UK, and it is absolutely essential that we have a relationship with them.”
Analysis by Ed Conway: The chancellor’s bet with China
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However, former Prime Minister Boris Johnson said Ms Reeves had “been scolded” and said she should “go to HR and get her P45 back – or stay in China”.
This is the first Economic and Financial Dialogue (EFD) between the UK and China since 2019, building on the Labor Government’s plan. for a “pragmatic” policy with the second largest economy in the world.
Sir Keir Starmer was the first British Prime Minister to meet Chinese President Xi Jinping in six years at the G20 summit in Brazil last autumn.
Relations between the UK and China have become tense over the past decade, with the Conservative government speaking out against human rights abuses and concerns. increased due to national security risks.
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Navigating this has proven tricky given that China is the UK’s fourth largest trading partner, with a trading relationship worth almost £113 billion and exports to China supporting more than 455 000 jobs in the UK in 2020, according to the government.
Over the Tories’ 14 years in office, the approach has varied widely, from the “golden age” under David Cameron to hawkish aggression under Liz Truss, while Rishi Sunak vowed to be “robust » but resisted pressure from his own party. call China a threat.
The Treasury said a stable relationship with China would support economic growth and that “ensuring the security and improvement of the situation of British workers is at the forefront of the Chancellor’s concerns”.
Ahead of her visit, Ms Reeves said: “By finding common ground on trade and investment, while being frank about our differences and making national security the first duty of this Government, we can build a long-term economic relationship with China that works. in the national interest. »