UK-China Economic and Financial Dialogue 2025-01-14

The Conservatives criticise Labour's economic performance, noting negative impacts such as a weakening pound, high borrowing costs, and inflation. They argue that the Chancellor's trip to China was unhelpful given the domestic economic issues. Mel Stride highlights that the deal announced by the Chancellor amounts to £120 million annually but fails to address the £12 billion increase in debt interest due to her Budget.

The Chancellor defends her China trip, emphasising that it secured tangible benefits for British businesses. She criticises the opposition's lack of policy proposals and their previous failure under Liz Truss’s mini-Budget that crashed the economy.

Criticises Budget for damaging economic growth, highlighting national insurance increase's negative impact on small businesses and high streets. Questions China visit's value and raises concerns about trade deals involving human rights issues.

Supports Chancellor for raising case of Jimmy Lai, emphasising importance of strategic engagement with China despite differences.

Questions Government's position on slave labour in supply chains, citing example of Shein refusing to answer questions about forced labour in its supply chain during a Select Committee hearing.

Reminds Conservative Members that UK bond yields are rising due to global factors, not local ones. Questions Chancellor on building economic security through domestic energy independence from foreign fossil fuel dictators.

Challenges Chancellor's claim that growth is the top priority when there has been no growth since Budget, urging her to accept responsibility for economic issues.

Supports Chancellor's long-term focus on raising living standards and growth, urges against short-termism in market responses.

Questions whether Chinese Communist Party gave assurance about UK economy performance during Chancellor's visit.

Welcomes Chancellor’s raising of human rights issues in Beijing, calls for consistent approach towards China after Conservative inconsistency.

Asks Chancellor to rule out future spending cuts.

Asks the Chancellor to engage constructively with large economies like China for trade benefits, referencing the Scottish Government's experience with emergency spending cuts.

Requests reassurance on constructive engagement regarding British Steel's future in Scunthorpe; Chancellor acknowledges ongoing talks but cannot provide an update.

Supports the Chancellor for securing economic benefits, criticising Conservatives' lack of seriousness about growth during her China trip.

Asks if the Chancellor spoke with the Governor of the Bank of England on stabilizing bond markets; Chancellor confirms regular communication with him.

Highlights the Conservative Party's failure to address debt levels and criticises them for their lack of engagement in serious economic discussions, such as those held by Labour.

Asks if human rights abuses were discussed during the Chancellor's trip to China; Chancellor confirms raising issues on human rights and freedoms.

Praises Labour for cutting deals in national interest and securing benefits, contrasting with Conservative rhetoric.

Questions the Chancellor's focus on China over Europe; highlights UK exports to EU compared to China and seeks commitment to talk more to European partners about trading opportunities.

Asks for details on how the Government plans to reinvigorate the UK-China stock connect, allowing UK companies access to Chinese capital markets.

Questions the Chancellor's ability to deliver growth given market concerns; seeks clarity on actions taken to address bond yields and currency issues.

Asks if the Chancellor discussed the Grangemouth refinery issue with Chinese counterparts; Chancellor confirms working closely with Scottish Government for a positive future.

Questions when the economy will start growing again, highlighting recent economic data showing decline; challenges Chancellor's confidence in growth.

Supports Chancellor's approach of developing international trade relationships alongside public investment and industrial strategy to stimulate growth.

Critiques the £600 million secured as insufficient given high borrowing rates; questions the effectiveness of the Budget in rebuilding Britain after Conservative policies.

Praises Chancellor's efforts to secure investment through industrial strategy, contrasting with previous Conservative policy on heavy industry sales to China.

Under the previous Government, business investment fell to 28th out of 31 OECD countries. The current industrial strategy needs to overcome this poor legacy on business investment left by the Conservatives.

The Chancellor's 'death tax' will devastate family farms and small businesses, a key part of the economy. She has not met with agricultural unions to address these issues despite her international engagements.

The visit to China is consistent with the Government’s approach to engage and compete where necessary, securing tangible benefits for UK businesses.

Investors are concerned about cuts in transport capital budgets despite promises of infrastructure investment. He seeks assurance that there will be no new tax rises or spending cuts in the March statement.

The Government's decision to re-engage with China is yielding economic benefits while allowing for discussions on difficult issues like human rights and labour standards.

HSBC's annual profit is significantly higher than the £600 million secured from China. Questions whether the Chancellor will raise borrowing, taxes or cut spending to meet fiscal rules.

Emphasises that growth must go hand in hand with economic security, which previous Conservative governments failed to achieve leading to reliance on foreign gas for heating.

Questions the Chancellor's changes to energy profits levy and their impact on UK’s energy security and tax revenues. Questions why she is undermining the sector rather than supporting it.

Chinese companies must not provide any support for Putin's illegal war in Ukraine, which was raised by the Chancellor during her visit to China.

Asks if concerns were raised about Confucius Institute and Jimmy Lai; received a response that issues were raised privately in re-engagement with Chinese Government.

Questions the shadow Chancellor's demand for the Chancellor to return from China, emphasising tangible benefits gained from staying there, including new licences and quota allocations for financial services businesses.

Asks if issues about Russian oil and gas imports were raised in the visit to China; received a response that sanctions on Russian oil and gas were increased alongside US efforts.

Seeks clarity on how the Chancellor's visit will benefit businesses and residents in Harlow, while also questioning the current state of the Conservative party.

Asked the Chancellor to explain steps taken to address forced labour in supply chains, particularly at fast fashion companies such as Shein. Requested data on extent of forced labour and actions to strengthen due diligence requirements for sourcing from areas with known human rights abuses.

Welcomed the UK-China economic dialogue but highlighted concerns about human rights abuses in China, including issues related to Uyghur Muslims, Tibetan Buddhists and Christians. Asked how safeguards would be put in place for British money and goods to ensure engagements do not support violations.