UK–China Economic and Financial Strategy Dialogue

Lord Davidson of Glen Clova Excerpts

Tuesday 4th February 2025 Lords Chamber

Asked by

[Lord Davidson of Glen Clova]

To ask His Majesty’s Government what were the outcomes of the UK–China Economic and Financial Strategy Dialogue held in Beijing in January.

[The Financial Secretary to the Treasury (Lord Livermore) (Lab)]

My Lords, the 2025 UK-China Economic and Financial Dialogue was the first since 2019. The Chancellor was joined by the Governor of the Bank of England, the chief executive of the Financial Conduct Authority, and representatives from Britain’s financial services firms. The dialogue unlocked agreements worth £600 million over the next five years, and secured new agreements on vaccine approvals, fertiliser, whisky labelling, legal services, automotives, and accountancy. In financial services, co-operation was agreed in areas such as capital markets, pensions and sustainable finance. The Chancellor also raised areas of concern to the UK, including trade imbalances, economic security, Russia’s illegal war in Ukraine, and human rights.

[Lord Davidson of Glen Clova (Lab)]

My Lords, I thank my noble friend the Minister for his response. I congratulate the Government on breaking the hiatus in the dialogue, which lasted for a long period of five years. Does my noble friend agree with me that the UK indisputably has a world-class financial services industry, which has delivered one-third of the service exports to China? Will he outline what is proposed by the Government to strengthen the relationship between China and the UK in financial services?

[Lord Livermore (Lab)]

I am grateful to my noble and learned friend for his question. He is right: this was the first economic and financial dialogue since 2019. The Chancellor was absolutely clear that we cannot ignore the fact that China is the second-largest economy worldwide, and our fourth-largest trading partner. He is right that financial services are the jewel in the crown of our relationship with China. That is why our financial services were the key focus of the Chancellor’s visit, which secured significant outcomes in terms of a new green bond, new commercial licences and quota allocations, the UK-China wealth connect, and capital markets and financial regulatory co-operation. That co-operation will continue and be strengthened.