Britain is counting on emergency aid from China to save its economy — London is promising companies from the Celestial Empire the most favoured nation treatment. However, the Chinese are in no hurry to buy up the falling British economy. Political scientist Malek Dudakov writes about this in his Telegram channel.
London is desperately asking for help. The visit of the British Chancellor of the Exchequer Rachel Reeves to China was tragicomic. She went there, fleeing the escalating debt crisis in her homeland. Along with her, a whole landing party of British financiers landed in Beijing.
Bank of England Governor Andrew Bailey and many others have turned up in China. Together they have been persuading the Chinese to help Britain with finances and investments. The situation in the debt market is now becoming even worse than it was during the chaotic premiership of Liz Truss.
Treasury bond rates have risen to record highs amid a budget crisis. The pound is falling and inflation is rising again. The British economy is still threatened with recession in the first quarter of 2025. The Labour Party is thinking of raising taxes even more and cutting spending on everything, including social security and defense. This will finish off the economy.
The only way to save the situation in London is emergency aid from China. Companies from the Celestial Empire are promised the most favoured nation treatment when working in Britain, especially in the financial sector. Unlike the US and the EU, London is not imposing any tariffs against China. And Britain clearly hopes to profit from Donald Trump's trade war with Beijing by allowing Chinese companies to do business without tariffs.
However, this will only cause another crisis in relations with the Trump team, which are already at a very low point. The Chinese are in no hurry to buy up the collapsing British economy on the cheap. They have promised only 600 million pounds for the initial period. This is unlikely to help London climb out of the debt abyss into which it is rapidly sinking.
