Rachel Reeves’s trip to China – the first by a British chancellor since 2019 – was always going to be controversial.
In recent years Conservative governments have been keeping Beijing at arm’s length – amid concern about espionage, the situation in Hong Kong, and the treatment of the Uyghurs.
David Cameron‘s so-called “Golden Era” of engagement in the pursuit of economic investment, notoriously capped by a visit to an Oxfordshire pub for a pint with President Xi Jinping – has been widely written off as a naive mistake.
There are many – not least the incoming US President Donald Trump – who believe we should maintain our distance.
But in another era of economic turmoil, the pursuit of growth is the government’s number one priority.
This week’s difficult market news – with the cost of government borrowing surging, and the value of the pound falling – has thoroughly raised the stakes.
Both the Tories and the Lib Dems argued the visit should be cancelled.
Prominent China hawk and former Conservative leader Iain Duncan Smith MP summed up both arguments against it.
“The trip is pointless,” he wrote on X. “As the disastrous ‘Golden Era’ showed, the murderous, brutal, law-breaking, communist regime in China will not deliver the growth the Labour government craves.
“Instead, she should stay home and try to sort out the awful mess her budget has created.”
President Xi Jinping and David Cameron in 2015. Pic: PA
Yet cancelling the trip would have been a diplomatic disaster and far from adding to economic stability would surely have spread a sense of crisis (with inevitable comparisons to Denis Healey’s abandoned visit to Hong Kong in 1976, months before he was forced to apply from an emergency loan from the IMF to save the pound from collapse).
Instead,…
