Hammond seeks to build China ties on trip to Beijing

Chancellor Philip Hammond has stepped up attempts to strengthen economic ties with China by praising the Belt and Road initiative and suggesting Britain could go easier on Chinese expansion in the South China Sea.

On a visit to Beijing, Hammond lauded the “truly epic ambition” of the Belt and Road international infrastructure programme, the Financial Times reported. He also said the UK “takes no position” in relation to the South China Sea after cancelling a trip to China in February over China’s claims to the area.

Hammond praised Belt and Road a few days after the UK decided to involve Huawei, the Chinese telecoms group, in building Britain’s 5G network despite security concerns. The Chancellor is seeking to win business for City firms on Belt and Road projects.

The Treasury clarified Hammond’s remarks saying there was no change to UK policy on the South China Sea and that he was referring to the sovereignty of disputed islands and not freedom of navigation.

China’s vice-premier Hu Chunhua said “fluctuations” in the country’s relations were regrettable and that he hoped Britain would respect China’s “core interests and important concerns”.