Rachel Reeves accused of making Britain a ‘laughing stock’ after returning from China with ‘puny’ investment deal

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Rachel Reeves accused of making Britain a ‘laughing stock’ after returning from China with ‘puny’ investment deal
Author: Kate Ferguson
Published: Jan, 11 2025 22:10

RACHEL Reeves was accused of making Britain a “laughing stock” after she went cap in hand to Communist China and came back with a “puny” investment deal. The Chancellor defied calls to stay home and take charge of the market meltdown to jet to Beijing to announce the new economic pact.

 [Rachel Reeves at the China-UK Economy and Finance Dialogue.]
Image Credit: The Sun [Rachel Reeves at the China-UK Economy and Finance Dialogue.]

Ms Reeves described her visit as a “significant milestone” in Britain’s relationship with China — and said it would help Britain’s struggling economy. But Tory MPs and business chiefs poured scorn on that after she announced just £600 million of investment from China over five years.

 [Rachel Reeves and He Lifeng shaking hands at a summit.]
Image Credit: The Sun [Rachel Reeves and He Lifeng shaking hands at a summit.]

A leading City adviser said of the deal: “There’s a whiff of desperation about it. I’m amazed they think £600million over five years is a good thing.”. He said big international investors are spooked and not investing in Britain. Ms Reeves also faced mockery for ­visiting the Beijing shop of UK bicycle maker Brompton — which has imposed a recruitment freeze because of her tax-hiking budget.

 [Rachel Reeves examining a Brompton folding bicycle in a Beijing store.]
Image Credit: The Sun [Rachel Reeves examining a Brompton folding bicycle in a Beijing store.]

Will Butler-Adams, boss of Brompton Bicycles, has seen company profits fall by 99 per cent last year. He said: “From a business perspective there are a whole load of policies, not least National Insurance, London living wage, that will cost us about £550,000 in the coming year.”.

Announcing the deal at a rushed press conference in China, Ms Reeves said she is ushering in a new era of “pragmatic cooperation in action”. She said: “They represent common ground being found on areas like financial services, trade, investment and the climate.

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