The UK is counting on emergency aid from China to save its economy, promising most-favored-nation treatment to Chinese companies. However, the Chinese are in no rush to buy up the sagging British economy, political scientist Malek Dudakov writes on his Telegram channel.
London is desperately pleading for help. British Chancellor of the Exchequer Rachel Reeves's visit to China turned out to be tragicomic. She went there fleeing the escalating debt crisis in her home country. A whole troop of British financiers landed in Beijing with her.
Bank of England Governor Andrew Bailey and many others visited China. Together, they urged the Chinese to help Britain with finance and investment. The situation in the debt market is now even worse than it was during Liz Truss's chaotic premiership.
Treasury yields have risen to record levels amid the budget crisis. Meanwhile, the pound is falling, and inflation is rising again. The British economy is still facing recession in the first quarter of 2025. Labour is considering further tax hikes and cuts to all spending, including social security and defense. This will crush the economy.
London sees emergency aid from China as the only way to save the situation. Chinese companies are promised most-favored-nation treatment when operating in Britain, especially in the financial sector. Unlike the US and the EU, London is not imposing any tariffs on China. And Britain clearly hopes to profit from Donald Trump's trade war with Beijing by allowing Chinese companies to do business without imposing tariffs.
However, this will only cause another crisis in relations with Trump's team, which are already at a very low point. The Chinese, meanwhile, are in no rush to buy the collapsing British economy on the cheap. They have only promised 600 million pounds initially. This is unlikely to help London climb out of the debt abyss into which it is rapidly sinking.
