High on the UK's wishlist will be a deal involving Chinese electric vehicles and renewable technology. Getty Images
High on the UK's wishlist will be a deal involving Chinese electric vehicles and renewable technology. Getty Images
High on the UK's wishlist will be a deal involving Chinese electric vehicles and renewable technology. Getty Images
High on the UK's wishlist will be a deal involving Chinese electric vehicles and renewable technology. Getty Images


UK trying to have it both ways on China as chancellor seeks to build bridges in Beijing


  • English
  • Arabic

January 07, 2025

There is a surreal aspect to the UK’s relations with China. Some would go further and say it smacks of rank hypocrisy. Certainly, it involves two hands.

There’s the hand to the fore this weekend when the chancellor, Rachel Reeves, leads a heavyweight delegation of business and City figures to Beijing to try to secure closer financial and trade ties between the two countries. Accompanying her will be Andrew Bailey, governor of the Bank of England; Nikhil Rathi, chief executive of the Financial Conduct Authority; Mark Tucker, chairman of HSBC; and a host of other business luminaries.

The two-handed approach is perfectly illustrated by how Reeves’ trip was due to coincide with the publication of a cross-Whitehall audit of UK relations with China, part of Labour’s manifesto commitment. So, as the Treasury and its boss wooed Beijing, other departments’ dealings with the country would come in for scrutiny.

That review has now been pushed back to spring and not all the findings will be made public.

Rachel Reeves is visiting China while MI5 Director General Ken McCallum has warned Chinese espionage represents a 'sustained campaign on a pretty epic scale'. PA
Rachel Reeves is visiting China while MI5 Director General Ken McCallum has warned Chinese espionage represents a 'sustained campaign on a pretty epic scale'. PA

That is not to say the other hand is in retreat. The head of the MI5 security service, Sir Ken McCallum, has declared that Beijing’s espionage represents a “sustained campaign on a pretty epic scale”.

The same hand has a Chinese businessman outed as a ‘spy’ with contacts running deep into Britain’s royal family, Beijing operatives embedding themselves in parliament and China being blamed, a few weeks ago, for cutting two fibre-optic cables 100 miles apart on the Baltic seabed. The UK Navy announced on Monday it was taking a lead role in detecting future threats to the North Sea.

Even so, it is expected to still make policy recommendations, including boosting Britain’s China-watching capability and requiring those employed by the Chinese government to register their role or face criminal prosecution, along with those recruited by other states viewed as a danger to the UK, such as Russia, Iran and North Korea.

Meanwhile, Britain continues to give vent to protests in the media and elsewhere against the jailing of anti-Beijing activists in its former Hong Kong colony.

It's bizarre but not unknown. Britain maintains a similar balancing act with other countries, weighing up investment opportunities with disapproval of some aspects of their behaviour. The attitude to China, however, must rank as the most extreme.

Given the recent history between the two it’s quite likely that the visit – the first 'Economic and Financial Dialogue', as it is officially termed – for more than five years, will be marked by yet another diplomatic crisis.

Certainly, some of the news coverage lately has required a double-take, with an item on perceived Chinese aggression and subterfuge followed by another on how Britain hopes to profit from stronger Chinese investment and economic ties. The UK is trying to have it both ways.

China's five financial priorities

To achieve China's political priorities, it needs the global capital markets and that’s where the City of London comes in. NurPhoto
To achieve China's political priorities, it needs the global capital markets and that’s where the City of London comes in. NurPhoto

Much of the talking will occur behind closed doors. It is unlikely, though, that Reeves and Co will lambast President Xi Jinping and his colleagues. Quite the reverse. What is said exactly will remain unknown, although it is difficult to imagine her even so much as venturing into awkward territory.

More likely will be her pursuit of pragmatism and the belief the two have much to offer each other business-wise.

Britain, post-Brexit, is in urgent need of major trading partners. Promised deals with India and the US have not materialised, while those concluded so far have been minor in nature.

It won’t be lost on the participants that the discussions directly precede the return to the White House of Donald Trump, who has declared his intent to increase tariffs against Chinese imports. Britain is also unsure of where it stands with the new US president, whether the historical ‘special relationship’ carries weight with him or whether it too will be dragged into a trade war.

High on the Reeves' wishlist will be Chinese electric vehicles. They, along with renewable technology, could be manufactured in Britain, bringing much-wanted investment and jobs.

It's easy to look at China’s might and say there is little for Beijing to gain by striking accords with Britain, not with a nation that repeatedly disrespects it so publicly and accuses it of engaging in some sort of cold war. But the Chinese are nothing if not pragmatic themselves. There is plenty that Britain can afford them.

London is home to one of the world’s strongest professional service industries, it’s the second largest financial centre after New York (in Trump’s US, of course). The Chinese economy is shifting. The population is ageing and the focus is on increased consumption and achieving slower but sustained growth.

Xi’s government has listed its five financial priorities: technology, green finance, digitalisation, financial inclusion and pensions. To secure those it must look to the global capital markets and that’s where the City comes in.

That’s why, as well, along with Reeves and her officials there will be Tucker and other financiers. The talk will be of facilitating, not blocking. That chimes as well with a London market that is reeling from corporate defections to the US, that wishes to be seen to be as international money powerhouse. In return for assistance in capital-raising, UK banks, led by HSBC, wish to be granted greater access to China’s financial services.

Tread the finest of lines

Electric cars waiting for export waiting at Yantai port, in eastern China's Shandong province. AFP
Electric cars waiting for export waiting at Yantai port, in eastern China's Shandong province. AFP

The critics won’t like it but this weekend is due to herald further meetings across areas of mutual interest. The energy and climate change secretary, Ed Miliband, will journey to China shortly.

Reeves is picking up where a Tory chancellor, Philip Hammond left off. He was the last UK minister to hold formal economic discussions with China in 2019. Hammond was following a previous Tory chancellor, George Osborne, who hailed a ‘golden era’ in Anglo-China relations and ‘deep and close partnerships’.

Nobody is making that boast today. Hammond now says such talk was “a mistake”. He says: “We were raising expectations about a level of closeness that there could never be because of differing cultural and political traditions.”

Instead, the UK should be concentrating on a “mutually beneficial relationship which recognises its boundaries and … works to maximise the benefits for both sides within those boundaries”. He says that provided Reeves enters talks with “her eyes open” and does not allow security to be compromised for trade, there are deals to be struck.

That’s music to those who want to push UK economic growth but anathema to others. Reeves and her delegation must tread the finest of lines.

The five pillars of Islam

1. Fasting 

2. Prayer 

3. Hajj 

4. Shahada 

5. Zakat 

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Part three: an affection for classic cars lives on

Read part two: how climate change drove the race for an alternative 

Read part one: how cars came to the UAE

First-round leaderbaord

-5 C Conners (Can)

-3 B Koepka (US), K Bradley (US), V Hovland (Nor), A Wise (US), S Horsfield (Eng), C Davis (Aus);

-2 C Morikawa (US), M Laird (Sco), C Tringale (US)

Selected others: -1 P Casey (Eng), R Fowler (US), T Hatton (Eng)

Level B DeChambeau (US), J Rose (Eng) 

1 L Westwood (Eng), J Spieth (US)

3 R McIlroy (NI)

4 D Johnson (US)

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

Read part one: how cars came to the UAE

FIGHT INFO

Men’s 60kg Round 1:

Ahmad Shuja Jamal (AFG) beat Krisada Takhiankliang (THA) - points 
Hyan Aljmyah (SYR) beat Akram Alyminee (YEM) - retired Round 1
Ibrahim Bilal (UAE) beat Bhanu Pratap Pandit (IND) - TKO Round 1

Men’s 71kg Round 1:
Seyed Kaveh Soleyman (IRI) beat Abedel Rahman (JOR) - RSC round 3.
Amine Al Moatassime (UAE) walk over Ritiz Puri (NEP)

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part one: how cars came to the UAE

 

The lowdown

Badla

Rating: 2.5/5

Produced by: Red Chillies, Azure Entertainment 

Director: Sujoy Ghosh

Cast: Amitabh Bachchan, Taapsee Pannu, Amrita Singh, Tony Luke

A new relationship with the old country

Treaty of Friendship between the United Kingdom of Great Britain and Northern Ireland and the United Arab Emirates

The United kingdom of Great Britain and Northern Ireland and the United Arab Emirates; Considering that the United Arab Emirates has assumed full responsibility as a sovereign and independent State; Determined that the long-standing and traditional relations of close friendship and cooperation between their peoples shall continue; Desiring to give expression to this intention in the form of a Treaty Friendship; Have agreed as follows:

ARTICLE 1 The relations between the United Kingdom of Great Britain and Northern Ireland and the United Arab Emirates shall be governed by a spirit of close friendship. In recognition of this, the Contracting Parties, conscious of their common interest in the peace and stability of the region, shall: (a) consult together on matters of mutual concern in time of need; (b) settle all their disputes by peaceful means in conformity with the provisions of the Charter of the United Nations.

ARTICLE 2 The Contracting Parties shall encourage education, scientific and cultural cooperation between the two States in accordance with arrangements to be agreed. Such arrangements shall cover among other things: (a) the promotion of mutual understanding of their respective cultures, civilisations and languages, the promotion of contacts among professional bodies, universities and cultural institutions; (c) the encouragement of technical, scientific and cultural exchanges.

ARTICLE 3 The Contracting Parties shall maintain the close relationship already existing between them in the field of trade and commerce. Representatives of the Contracting Parties shall meet from time to time to consider means by which such relations can be further developed and strengthened, including the possibility of concluding treaties or agreements on matters of mutual concern.

ARTICLE 4 This Treaty shall enter into force on today’s date and shall remain in force for a period of ten years. Unless twelve months before the expiry of the said period of ten years either Contracting Party shall have given notice to the other of its intention to terminate the Treaty, this Treaty shall remain in force thereafter until the expiry of twelve months from the date on which notice of such intention is given.

IN WITNESS WHEREOF the undersigned have signed this Treaty.

DONE in duplicate at Dubai the second day of December 1971AD, corresponding to the fifteenth day of Shawwal 1391H, in the English and Arabic languages, both texts being equally authoritative.

Signed

Geoffrey Arthur  Sheikh Zayed

UK's plans to cut net migration

Under the UK government’s proposals, migrants will have to spend 10 years in the UK before being able to apply for citizenship.

Skilled worker visas will require a university degree, and there will be tighter restrictions on recruitment for jobs with skills shortages.

But what are described as "high-contributing" individuals such as doctors and nurses could be fast-tracked through the system.

Language requirements will be increased for all immigration routes to ensure a higher level of English.

Rules will also be laid out for adult dependants, meaning they will have to demonstrate a basic understanding of the language.

The plans also call for stricter tests for colleges and universities offering places to foreign students and a reduction in the time graduates can remain in the UK after their studies from two years to 18 months.

Specs

Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request

About Karol Nawrocki

• Supports military aid for Ukraine, unlike other eurosceptic leaders, but he will oppose its membership in western alliances.

• A nationalist, his campaign slogan was Poland First. "Let's help others, but let's take care of our own citizens first," he said on social media in April.

• Cultivates tough-guy image, posting videos of himself at shooting ranges and in boxing rings.

• Met Donald Trump at the White House and received his backing.

Dust and sand storms compared

Sand storm

  • Particle size: Larger, heavier sand grains
  • Visibility: Often dramatic with thick "walls" of sand
  • Duration: Short-lived, typically localised
  • Travel distance: Limited 
  • Source: Open desert areas with strong winds

Dust storm

  • Particle size: Much finer, lightweight particles
  • Visibility: Hazy skies but less intense
  • Duration: Can linger for days
  • Travel distance: Long-range, up to thousands of kilometres
  • Source: Can be carried from distant regions
The%C2%A0specs%20
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%20Dual%20synchronous%20electric%20motors%20%20%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E646hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E830Nm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ETwo-speed%20auto%20(rear%20axle)%3B%20single-speed%20auto%20(front)%20%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh552%2C311%3B%20Dh660%2C408%20(as%20tested)%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3Enow%3C%2Fp%3E%0A
Match info

Premier League

Manchester United 2 (Martial 30', Lingard 69')
Arsenal 2 (Mustafi 26', Rojo 68' OG)

Joker: Folie a Deux

Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson

Director: Todd Phillips 

Rating: 2/5

MATCH INFO

Asian Champions League, last 16, first leg:

Al Ain 2 Al Duhail 4

Second leg:

Tuesday, Abdullah bin Khalifa Stadium, Doha. Kick off 7.30pm

The five pillars of Islam
Lexus LX700h specs

Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor

Power: 464hp at 5,200rpm

Torque: 790Nm from 2,000-3,600rpm

Transmission: 10-speed auto

Fuel consumption: 11.7L/100km

On sale: Now

Price: From Dh590,000

The years Ramadan fell in May

1987

1954

1921

1888

The five pillars of Islam

1. Fasting

2. Prayer

3. Hajj

4. Shahada

5. Zakat 

UAE v Gibraltar

What: International friendly

When: 7pm kick off

Where: Rugby Park, Dubai Sports City

Admission: Free

Online: The match will be broadcast live on Dubai Exiles’ Facebook page

UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)

5 of the most-popular Airbnb locations in Dubai

Bobby Grudziecki, chief operating officer of Frank Porter, identifies the five most popular areas in Dubai for those looking to make the most out of their properties and the rates owners can secure:

• Dubai Marina

The Marina and Jumeirah Beach Residence are popular locations, says Mr Grudziecki, due to their closeness to the beach, restaurants and hotels.

Frank Porter’s average Airbnb rent:
One bedroom: Dh482 to Dh739 
Two bedroom: Dh627 to Dh960 
Three bedroom: Dh721 to Dh1,104

• Downtown

Within walking distance of the Dubai Mall, Burj Khalifa and the famous fountains, this location combines business and leisure.  “Sure it’s for tourists,” says Mr Grudziecki. “Though Downtown [still caters to business people] because it’s close to Dubai International Financial Centre."

Frank Porter’s average Airbnb rent:
One bedroom: Dh497 to Dh772
Two bedroom: Dh646 to Dh1,003
Three bedroom: Dh743 to Dh1,154

• City Walk

The rising star of the Dubai property market, this area is lined with pristine sidewalks, boutiques and cafes and close to the new entertainment venue Coca Cola Arena.  “Downtown and Marina are pretty much the same prices,” Mr Grudziecki says, “but City Walk is higher.”

Frank Porter’s average Airbnb rent:
One bedroom: Dh524 to Dh809 
Two bedroom: Dh682 to Dh1,052 
Three bedroom: Dh784 to Dh1,210 

• Jumeirah Lake Towers

Dubai Marina’s little brother JLT resides on the other side of Sheikh Zayed road but is still close enough to beachside outlets and attractions. The big selling point for Airbnb renters, however, is that “it’s cheaper than Dubai Marina”, Mr Grudziecki says.

Frank Porter’s average Airbnb rent:
One bedroom: Dh422 to Dh629 
Two bedroom: Dh549 to Dh818 
Three bedroom: Dh631 to Dh941

• Palm Jumeirah

Palm Jumeirah's proximity to luxury resorts is attractive, especially for big families, says Mr Grudziecki, as Airbnb renters can secure competitive rates on one of the world’s most famous tourist destinations.

Frank Porter’s average Airbnb rent:
One bedroom: Dh503 to Dh770 
Two bedroom: Dh654 to Dh1,002 
Three bedroom: Dh752 to Dh1,152 

The bio

Favourite book: Peter Rabbit. I used to read it to my three children and still read it myself. If I am feeling down it brings back good memories.

Best thing about your job: Getting to help people. My mum always told me never to pass up an opportunity to do a good deed.

Best part of life in the UAE: The weather. The constant sunshine is amazing and there is always something to do, you have so many options when it comes to how to spend your day.

Favourite holiday destination: Malaysia. I went there for my honeymoon and ended up volunteering to teach local children for a few hours each day. It is such a special place and I plan to retire there one day.

UAE currency: the story behind the money in your pockets
While you're here
Updated: January 07, 2025, 1:32 PM`