Chancellor marks £600m of secure growth for UK economy in Beijing
Source: gov.uk (2025-01-11)

Closer financial services links with China to support secure and resilient growth in UK as government’s number one mission.

- Lifting of market access barriers across areas such as agri-food, helping British business compete on level-playing field and grow exports.
- Pragmatic cooperation results in agreements worth £600 million to the UK economy over the next five years and sets course to deliver up to £1 billion.
- The UK continues to challenge China on areas of disagreement, with the Chancellor raising concerns over China’s support for Russia’s illegal war, domestic interference and sanctions against British parliamentarians.
Working people and businesses across the UK will feel the benefits of agreements worth £600 million to the British economy, as agreed in the 2025 UK-China Economic and Financial Dialogue (EFD).

Chancellor Rachel Reeves was hosted by Vice Premier He Lifeng in Beijing today, in support of a stable and balanced UK-China relationship. Both sides agreed to deeper cooperation across areas such as financial services, trade, investment, and the climate to support secure growth, while being frank and open on areas of disagreement.

Overall, this government’s reengagement with China sets us on course to deliver up to £1 billion of value for the UK economy.

Chancellor of the Exchequer Rachel Reeves said:

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.

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.

Britain is a leading financial services partner for China. A range of financial services companies with a substantial presence in the market - HSBC, Standard Chartered, Prudential, Schroders, abdrn, Fidelity International and London Stock Exchange Group – accompanied the Chancellor as a business delegation on the trip. The granting of new licences and quota allocations for UK firms such as HSBC, Schroders, abrdn and Aspect Capital to enhance their business in China will further strengthen these ties.

Alongside this are initiatives to improve capital market connectivity – including a commitment to further enhance the UK-China Stock Connect and welcoming the launch of UK-China over-the-counter bond business – as well as initiatives on pensions, countering illicit finance and sustainable finance cooperation.

As part of this, China announced plans to issue an inaugural overseas sovereign green bond – to be used to finance environmentally sustainable projects – in London during 2025. The UK and China will also explore a Wealth Connect programme in recognition of the role asset management has to play in supporting growth. The agreements today in financial services will provide significant value to the UK economy over the next five years.

Both sides have committed to improving existing channels to discuss more sensitive issues, including the need to speak candidly about national and economic security. In her engagement, the Chancellor made clear UK concerns about imbalances in the Chinese economy, and both sides agreed to discuss industrial policy in support of a global level playing field.

The UK and China have agreed to further cooperation including through strengthening the existing UK-China clean energy partnership and committing to a dialogue on international development – to work together in tackling shared global challenges.

The lifting of barriers that restricted export to China across a range of goods and services will support UK exports and innovation, particularly in the agri-food sector where a package headlined by pork, wool, poultry, and pet food stands to boost UK trade with China and support new jobs. China has also agreed to continue to liberalise sectors that restrict foreign investment, such as education and culture, and support a level playing field and fair competition.

The EFD is also part of a wider programme making substantive progress in improving arrangements for UK exports and investors. This is reflected in new agreements on vaccine approvals, fertilizer, whisky labelling, legal services, automotives and accountancy which set course for the EFD to unlock £1 billion of value for the UK economy.

In her meetings with Chinese government counterparts today, the Chancellor was clear on the importance of open channels on areas where we disagree. She urged China to cease its support for Russia’s defence industrial base, which is enabling Russia to maintain its illegal war against Ukraine.

In recognition that upholding national security is this government’s first duty, the Chancellor raised this government’s deep concerns over cases involving interference in our democracy and malicious cyber activity emanating from China. Reeves also raised the case of British National Jimmy Lai and raised UK concerns around the respect of protected rights and freedoms in Hong Kong.

She raised human rights, including in Xinjiang, and forced labour. The Chancellor made clear that China’s sanctions against Parliamentarians are completely unwarranted and unacceptable.

Looking ahead, regular dialogues and technical exchanges to progress pragmatic cooperation have been established. This includes further engagement at Ministerial and official level on trade, science and tech, intellectual property, customs, sports and creative industries.

Notes to editors
- A full list of outcomes from the 2025 UK-China Economic and Financial Dialogue can be found here. (https://www.gov.uk/government/publications/2025-uk-china-economic-and-financial-dialogue-policy-outcomes)
- The boost to trade includes estimates from the Department for Business and Trade and industry. Further details on the methodology can be found here. (https://www.gov.uk/government/publications/aggregate-valuation-estimates-for-market-access-barriers)
Stakeholder reaction

Sir Mark Tucker, HSBC Group Chairman said:

We welcome the fact that the UK China Economic and Financial Dialogue – and the Financial Services Summit – are taking place for the first time since 2019.

China is the world’s second largest economy, the world’s top goods exporter, second largest source of merchandise imports and the UK’s 4th largest trading partner. Deepening the UK-China partnership on trade, investment, finance, health, education and climate change amongst other priority areas, is vital to delivering growth, investment and high-quality jobs for both China and the UK.

Our focus is to continue contributing to that ambitious agenda and to a mutually beneficial programme of UK-China economic and financial co-operation going forward.

José Viñals, Group Chairman of Standard Chartered, said:

The UK-China Economic and Financial Dialogue is both valuable and important to us and our clients. As a UK-headquartered bank with a long history in China, we continue to see significant growth potential and opportunities to collaborate, as evidenced by the permission to trade China Treasury Bond Futures and receipt of our Type A Bond Underwriting licence. Looking ahead, we encourage further cooperation between our two markets and are enthusiastic about what we, and partner financial institutions, can do to help deliver impactful initiatives such as those in sustainable and transition finance.

Richard Oldfield, Group Chief Executive, Schroders, said:

China has long been an important strategic focus for Schroders; we have been committed to the market for more than 30 years having established our first office in Shanghai in 1994.

We are honoured to be supporting the UK-China Economic and Financial Dialogue, further underscoring our commitment to China.

Over the years, as the market has increasingly opened up, we have been a leader in developing a compelling active investment proposition in the region, grounded in strategic partnerships, supported by a hugely talented team and strong public markets and private assets capabilities.

More recently, we have started to manage money invested into Chinese renewable infrastructure, enabling our clients to meet their emissions targets through investing in high-quality clean generation in China. It is the largest renewables market in the world, and we are focused on enabling the transition from fossil to renewable generation.

Lord Sassoon, President of the China-Britain Business Council:

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 looks forward to hosting a roundtable in Shanghai tomorrow at which British businesses will share with the Chancellor what further market opening and other support they need to grow their business with China.

Miles Celic, CEO of TCUK:

This has been a constructive, practical and ambitious gathering. The British and Chinese financial and professional services industries have a clear and growing role to play in deepening trade and investment between our countries. In the process, we can help as both our societies adapt to ageing populations and move towards Net Zero.

Sir Douglas Flint, Chairman, abrdn;

The resumption of high-level ministerial engagement after a gap of five years has been hugely constructive to opening dialogue to explore and fulfil business opportunities for mutual benefit.

Jonathan Eckley, Agriculture and Horticulture Development Board (AHDB) Interim International Trade Development Director, said:

China is our biggest market for pig meat exports which offers significant opportunities for the UK. The re-listing of two UK sites in December to export to China was an incredibly positive end to 2024 and a great example of collaboration between many stakeholders including government departments, industry and AHDB.

The Economic and Financial Dialogue (EFD) illustrates the further strengthening of our trade relationship with China which we welcome, and we look forward to continuing working with government and industry to explore opportunities for our sectors in this important market.

Neil Willis, Cranswick PLC Director said:

The relisting of UK Pork establishments is a positive step forward and we welcome the effort made by the current UK Government in resolving the approval situation at our Norfolk facility. We look forward to continued collaboration and a proactive approach to safeguarding market access and ensuring uninterrupted trade relationships.

Alan Vallance, ICAEW Chief Executive, said:

I am proud and honoured to have attended the Financial Services Summit and I thank the organisers for their invitation to attend.

Professional and business services have been identified as a growth sector in the UK government’s industrial strategy, so we are delighted by the commitment to accountancy and look forward to working with the CICPA on mutual examination exemptions. Additionally, we’ll continue to work in partnership with our counterparts in China on common areas, like accountancy standards and sustainability, as part of our work in the public interest.

We look forward to working closely with both governments to help them deliver on their ambition to unlock economic growth.

A spokesperson for the British Poultry Council said:

We are thrilled to see the Chancellor prioritising UK poultry meat in the Economic and Financial dialogue with China. Launching discussions on lifting the HPAI ban, introducing regionalisation, restoring trade in high-value breeding stock, and resuming market access talks are key milestones for growth in British poultry meat. These steps are set to drive innovation, create jobs, and boost exports.

Contributing to food security both at home and abroad, such talks reinforce the UK’s position as a global leader in the sector. Thank you to the Agriculture, Food and Drink Counsellor for your support, along with all the government officials in Defra and DBT involved. Working together means building a robust foundation for growth, ensuring the continued success of British poultry meat.

A spokesperson for the Pet Industry Federation (PIF) said:

The Pet Industry Federation fully supports the UK government in committing to a pet food protocol that would enable the export of UK pet food to China. We have seen first-hand the significant enthusiasm from Chinese state officials to facilitate these exports. This presents a major opportunity for UK pet food manufacturers to access one of the world’s largest and fastest-growing markets for pet products.

At present, several EU countries and the USA are able to export pet food to China, which gives them a competitive edge. By securing a similar agreement, the UK can unlock substantial economic benefits, bolster the global reputation of our pet food industry, and take advantage of the strong demand for high-quality UK products overseas. We welcome the Government prioritising this protocol to ensure the UK does not miss out on this vital opportunity.

A spokesperson for UK Pet Food said:

UK Pet Food welcomes the commitment to sign the pet food protocol as part of the Economic and Financial Dialogue in China. This fundamental agreement represents a major step forward in enabling UK pet food manufacturers to access the Chinese market, reflecting the sector’s commitment to producing high-quality, safe, and innovative products. We are confident that this protocol will strengthen bilateral trade relations and create significant opportunities for the UK pet food industry.

By fostering partnerships with the Chinese market, this agreement not only supports the growth of our sector but also meets the rising global demand for premium pet food. UK Pet Food is committed to working closely with the UK government and industry stakeholders to ensure the protocol’s successful implementation and to build long-term cooperation.

A GlaxoSmithKline spokesperson said:

GSK supports the UK-China Economic Financial Dialogue recognizing its importance in fostering mutual growth in healthcare, getting ahead of disease by preventing it with GSK innovative solutions.

A spokesperson for the Association of British HealthTech Industries said:

To ensure equity of access for patients around the world to HealthTech that enhances and saves lives, regulatory harmonisation is a goal we fully support.