U.K. Finance Minister Visits China Amid Financial Chaos, Deputy Prime Minister Hu Jie-feng Talks With Economic and Financial Affairs For The First Time In Six Years

British Finance Minister Rachel Reeves visited China amid the turmoil in the country's financial market to seek to strengthen economic and trade relations between the two countries, AFP and China's state-run Xinhua news agency reported.

China's Deputy Prime Minister and Reeves presided over the 11th China-UK Economic and Financial Dialogue at the State Guest House in Diaoyutai, Beijing, today (11th).

The highest-level talks on the economy between the two countries came six years after then-Finance Minister Philip Hammond met with Deputy Prime Minister Hu Chun-hwa in London in 2019.

"The UK is a natural home for Chinese financial companies," Reeves said at the meeting. "And it's a springboard for Chinese companies looking to build their global presence."

"There is an opportunity to further strengthen bilateral relations across capital markets," he said, adding, "However, it is important to continue to strengthen financial relations and cooperate more closely in regulatory cooperation."

Deputy Prime Minister He, China's economic heavyweight, also said he hoped the dialogue would help develop the internationalization of the Chinese yuan, deepen relations between the two countries' capital markets and strengthen cooperation in many areas, including green finance.

Reeves' visit to China comes as rates on Britain's 10-year Treasury note jumped to their highest since the 2008 financial crisis, hampering the ruling Labor Party's efforts to revive the economy.

Surging government bond rates increase the cost of government financing and debt repayment, increasing the risk of reducing spending or raising taxes.

While the main opposition Conservative Party criticized the trip to China for leaving amid financial instability, Reeves said pragmatic and predictable relations with China would help boost economic growth and trade.

"The reason I came to China is to provide real benefits for British companies to export and trade around the world and to make it easier to access China, the world's second-largest economy," Reeves said after the meeting, visiting British bike maker Brompton's Beijing store.

Reeves also met with Han Jeong, vice president of the country, Xinhua said.

"China places great importance on the development of Sino-British relations," Han said. "China is willing to continue to expand openness and exchanges with the UK, promote understanding and mutual trust, and deepen reciprocal cooperation to bring more benefits to both countries and the world."

"The UK also places great importance on developing relations with China," Reeves said. "We hope to promote the economic development of the two countries by strengthening frank dialogue and reciprocal cooperation with China."

Britain's relations with China have been strained in the past under the Conservative government as it has been tough on issues such as human rights, Hong Kong and espionage allegations, but it has sought to improve relations since Prime Minister Keir Starmer's Labour Party took power in July last year.