— British treasurer Rachel Reeves said Saturday that London was a “natural home” for Chinese finance during a visit to Beijing in the shadow of bond market turmoil back home.
The increase makes it more costly for the government to finance current operations and repay debt, raising risks it will have to make spending cuts or hike taxes. At a later press briefing, Reeves said “common ground” had been found on financial services, trade, investment, climate change and other areas.
Reeves faced pressure from the parliamentary opposition to stay home and address the financial crisis, but a spokesperson for Prime Minister Keir Starmer said this week she had not planned to cancel her “long-standing” trip. The governor of the Bank of England and the chief executive of the UK’s Financial Conduct Authority also took part in the visit.
But trust is fragile following claims that a Chinese businessman used his links with Britain’s Prince Andrew to spy for the Communist Party, an allegation Beijing has dismissed as “preposterous”.