19th Apr 2025 10:36
(Alliance News) - The UK Chancellor has said it would be "foolish" to stop engaging with China.
Rachel Reeves is due to hold talks with the US next week amid efforts to strike a trade deal, which the UK hopes can help soften the brunt of Donald Trump's tariffs.
There has been speculation that Washington may press the UK to limit its dealings with China as part of trade talks.
"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 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.
The newspaper has reported that officials in Washington believe an agreement could be weeks away, but Trump said on Thursday he was in "no rush" to reach any deals because of the revenues his new tariffs are generating.
He said lots of countries wanted to reach deals "frankly…more than I do", and that any agreements would come "at a certain point".
On Friday, UK Prime Minister Keir Starmer had his first call with Trump since the latter unveiled 10% tariffs on all goods imported to America from the UK.
The two leaders talked about the "ongoing and productive discussions" on trade between the two countries, a Downing Street spokesperson said.
"The prime minister reiterated his commitment to free and open trade and the importance of protecting the national interest," No 10 said.
A 25% levy on car imports also applies to the UK.
Reeves will hold talks with officials from the US administration when she travels to Washington to attend the International Monetary Fund's spring meetings with other finance ministers.
By Helen Corbett, PA Political Correspondent
source: PA
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