Reeves' Art of the China Deal Is No Masterclass
The UK finance chief’s Beijing engagement is unlikely to move the economic needle.
Rachel Reeves, UK chancellor of the exchequer, left, shakes hands with He Lifeng, China's vice premier, in Beijing on Jan. 11, 2025.
Source: Bloomberg/BloombergUK Chancellor of the Exchequer Rachel Reeves left behind turmoil in financial markets to travel to Beijing in pursuit of growth drivers for the British economy, sparking a media backlash at home and dismaying critics of China’s Communist Party. The results were underwhelming.
Reeves, who was accompanied by leaders of financial-services companies with interests in China including HSBC Holdings Plc and Standard Chartered Plc, proclaimed agreements worth £600 million ($729 million) over the next five years that she said would benefit working people and businesses across the UK. To put that figure into perspective, it amounts to an annual boost of less than 0.005% to Britain’s $3.4 trillion economy. The potential value is higher, admittedly. Cooperation with China sets a course to deliver as much as £1 billion of benefits, according to a Treasury statement, which equates to an increase of more like 0.007%. Don’t break out the champagne.