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China’s vice-minister of finance has said Sino-British government relations have faced “ups and downs”, but he is “optimistic” about deeper financial co-operation between the nations, as the first renminbi sovereign green bonds were issued in London.
Liao Min said that financial co-operation between the two nations had been strong during the past four decades since China began “opening up” to the world.
The vice-minister attended a green bond issuance ceremony as trading opened at the London Stock Exchange on Thursday, accompanied by UK City minister Emma Reynolds.
Liao’s visit marked the latest trip in a flurry of high level exchanges between the two nations. Sir Keir Starmer has sought to step up diplomatic engagement since coming to power last summer, following a period of frostier relations under the Conservatives.
Asked about the warmer tone of bilateral relations, Liao said: “There is always ups and downs.
“Both sides can work together closely,” he told the Financial Times. “This is a very sort of ‘win-win’ situation for both sides. I’m quite optimistic about our co-operation in economic, financial areas.”
UK chancellor Rachel Reeves and foreign secretary David Lammy have visited Beijing in recent months, while Chinese foreign minister Wang Yi came to London in February. Starmer is also expected to visit China later this year.
China’s plan to issue its debut sovereign green bonds in an international finance hub came to light after Reeves’ met with Chinese vice-premier He Lifeng in January to discuss co-operation on financial services, investment, trade and climate change.
China is thinking about expanding “the scope, the currencies and locations” of green bond issuance, Liao said on Thursday.
He highlighted that both Starmer and Chinese President Xi Jinping had pointed to deeper economic links as a key “pillar” of closer bilateral relations.
Zheng Zeguang, Chinese ambassador to the UK, claimed the bonds issued in London this week were “testament to China’s commitment to green and low carbon developments”.
