Reeves warns cutting ties with China would be 'foolish' as US continues trade war with Beijing
19 April 2025, 06:47
Cutting ties with China would be “foolish”, the Chancellor has warned.
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Rachel Reeves is set to hold crunch talks with the United States next week in a bid to agree a trade deal in the wake of Donald Trump’s global campaign of tariffs.
Those close to talks have suggested Washington may press the UK to limit its dealings with China as part of trade talks.
But failing to engage with the second-biggest economy on Earth would be the wrong move, Ms Reeves has warned.
Read more: Starmer-Trump trade talks ‘ongoing’ and ‘productive’ says Downing Street following White House call
“China is the second-biggest economy in the world, and it would be, I think, very foolish, to not engage. That’s the approach of this Government,” she told The Telegraph.
She signalled she would back the fast fashion firm Shein launching an initial public offering (IPO) in the UK, saying the London Stock Exchange and the Financial Conduct Authority have “very strict standards” and “we do want to welcome new listings”.
Shein, which was founded in China but is now based in Singapore, has seen efforts to float face a variety of obstacles, including political pressure in the UK over alleged supply chain and labour abuses.
Trade negotiations between the UK and US are said to be "ongoing" and "productive" following a call between Sir Keir Starmer and US President Donald Trump.
The Prime Minister spoke of the need for "free trade" and his intention to "protect the national interest" during a phone call with Trump - as the pair attempted to iron out a trade agreement.
Former Trump adviser says Britain has 'no choice' but to 'suck up' to US President
The call touched on a host of subjects according to Downing Street, with the leaders also discussing the ongoing conflict in Ukraine, nuclear details surrounding Iran. as well as the Houthis in Yemen.
Word of the pair's international discussions emerged from Downing Street on Friday afternoon, with both parties "agreed to stay in touch".
“The Prime Minister spoke to the President of the United States Donald Trump this afternoon," a Downing Street spokesperson said.
“The leaders began by discussing the ongoing and productive discussions between the UK and US on trade," Downing Street continued.
"The Prime Minister reiterated his commitment to free and open trade and the importance of protecting the national interest.
“The leaders also discussed the situation in Ukraine, Iran and recent action taken against the Houthis in Yemen.”
“They agreed to stay in touch,” Downing Street said.
