Britain's finance minister Rachel Reeves on Saturday resumed talks with Beijing, arguing that "pragmatic and predictable" relations with the country would boost economic growth and trade.

Annual bilateral talks between China and the UK — the world's second and sixth largest economies respectively — had been suspended since 2019 due to the COVID-19 pandemic and more widely deteriorating relations.

Why are the talks resuming now?

As the UK's Chancellor of the Exchequer, Reeves said she was in China to seek new markets at a time when Britain is desperate to move out of the economic doldrums. 

Reeves' visit follows a dialogue that started last year between British Prime Minister Keir Starmer and Chinese President Xi Jinping — the first meeting between the two countries' leaders since 2018.

"Growth is the number one mission of this government, to make our country better off," Reeves said while visiting the Beijing showroom of UK bicycle maker Brompton.

"That's why I'm in China, to unlock tangible benefits for British businesses exporting and trading around the world," she said.

Reeves met with Chinese leaders including Vice Premier He Lifeng and Vice President Han Zheng.

Following the meeting, she announced agreements had been reached worth £600 million ($732 million, €714 million) to the UK economy over the next five years, while "re-engagement" with China "already sets us on course to deliver up to £1 billion of value for the UK economy."

What's controversial about the visit?

Reeves has come under criticism for her trip to China amid financial market turmoil at home with a rise in British government borrowing costs, partly due to a global bond selloff.

That development has prompted comparisons to a 2022 "mini-budget" crisis that forced then-Prime Minister Liz Truss to leave Downing Street after just 50 days in office.

However, the bond market changes this week have been less sharp and have applied over a range of international currencies. There has so far been no evidence of the strain on institutional investors that forced the Bank of England into purchases of emergency bonds in 2022.

The trip is also taking place as UK political leaders and intelligence chiefs have repeatedly warned about security threats that China poses.

The calls grew louder last month when it emerged that an alleged Chinese spy had cultivated close links to Prince Andrew and conducted "covert and deceptive activity" for China's ruling Communist Party.

UK officials said that, on her visit, Reeves would urge Beijing to stop its material and economic support for Russia's war in Ukraine and that she would raise the issue of human rights, particularly in the former British colony of Hong Kong.

rc/ab (AFP, dpa, Reuters)