Reeves: Cutting ties with China would be ‘foolish’
Chancellor Rachel Reeves has said it would be “foolish” to stop engaging with China.
Reeves is due to hold talks with the US next week amid efforts to strike a trade deal, which the UK hopes can help soften the brunt of Donald Trump’s tariffs.
There has been speculation that Washington may press the UK to limit its dealings with China as part of trade talks.
“China is the second-biggest economy in the world, and it would be, I think, very foolish, to not engage. That’s the approach of this government,” she told The Telegraph.
She signalled she would back the fast fashion firm Shein launching an initial public offering (IPO) in the UK, saying the London Stock Exchange (LSE) and the Financial Conduct Authority (FCA) have “very strict standards” and “we do want to welcome new listings”.
Shein, which was founded in China but is now based in Singapore, has seen efforts to float face a variety of obstacles, including political pressure in the UK over alleged supply chain and labour abuses.
The newspaper has reported that officials in Washington believe an agreement could be weeks away, but Trump said on Thursday he was in “no rush” to reach any deals because of the revenues his new tariffs are generating.
He said lots of countries wanted to reach deals “frankly … more than I do”, and that any agreements would come “at a certain point”.
On Friday, Sir Keir Starmer had his first call with the US president since he unveiled 10 per cent tariffs on all goods imported to America from the UK.
The two leaders talked about the “ongoing and productive discussions” on trade between the two countries, a Downing Street spokesperson said.
“The Prime Minister reiterated his commitment to free and open trade and the importance of protecting the national interest,” No10 said.
A 25 per cent levy on car imports also applies to the UK.
Reeves will hold talks with officials from the US administration when she travels to Washington to attend the International Monetary Fund’s (IMF) spring meetings with other finance ministers.
Press Association – Helen Corbett