Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Rachel Reeves champions benefits of China trade as UK maintains open economy stance

by July 19, 2024
July 19, 2024
Rachel Reeves champions benefits of China trade as UK maintains open economy stance

Rachel Reeves has underscored the advantages of trading with China, indicating that the UK government is unlikely to implement punitive tariffs on imports from the world’s second-largest economy.

In her first interview since becoming Chancellor, Reeves told Bloomberg, “We are a small, open trading economy, and we benefit from those trade links with countries around the world, both for exports and imports, but also for foreign direct investment.

“Our approach is to trade and cooperate where possible and to challenge where necessary. However, we do not want to close the UK economy to imports and exports. We benefit from those trade links globally, including with China.”

This stance contrasts sharply with the United States, which has imposed a 100 per cent tariff on imported electric vehicles from China, and the European Union, which has similarly increased levies on Chinese goods.

Economists warn that the rise in protectionist trade policies could drive inflation and stifle global economic growth.

The UK has become increasingly dependent on services sector exports to manage its growing trade deficit. According to the Office for National Statistics, services exports have surged by around 60 per cent in real terms since 2010, while goods exports have increased by only 7 per cent and have fallen by about 6 per cent since the Brexit referendum in 2016.

Reeves acknowledged the challenging fiscal landscape she has inherited, suggesting that unpopular tax and spending decisions may be on the horizon. She indicated that the government’s first budget is likely to take place in September or October.

“I’m under no illusions about the scale of the challenge that I face,” Reeves remarked. “I won’t announce any tax breaks or changes without detailing how they will be funded.”

Reeves asserted that the UK’s current fiscal position is the worst since the end of the Second World War. Debt as a share of GDP is at its highest since the 1960s, and economic growth has decelerated significantly since the 2008 global financial crisis.

Rising interest rates over the past two years, aimed at curbing inflation, have increased government debt interest payments, reducing the scope for significant tax cuts or spending increases.

Government departments are collectively facing £20 billion in real-terms spending cuts, which economists argue could further strain already overburdened public services.

Read more:
Rachel Reeves champions benefits of China trade as UK maintains open economy stance

0
FacebookTwitterGoogle +Pinterest
previous post
China’s exports surge, pushing trade surplus to $99bn amid tariff threats
next post
Inheritance tax receipts hit £2.1 billion in three months

You may also like

Nissan set to commit to making new electric...

November 23, 2023

Etsy to ‘substantially’ cut vendors’ funds held in...

August 3, 2023

8 Essentials That Every Office Should Have

March 30, 2024

Michelle Donelan: Google AI training programme supports UK...

August 3, 2023

HMRC bring less prosecutions for tax-dodging than pre-pandemic...

May 3, 2023

How to Make Your Business More Sustainable

August 24, 2022

UK government debt sell-off accelerates as borrowing costs...

January 9, 2025

5 Benefits of Headless Commerce for Dynamic Businesses

January 25, 2023

Apple intelligence: How AI integration in IOS 18...

August 25, 2024

Act now to rescue the economy, bosses tell...

March 8, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Legal group sues FDA over puberty blocker records, citing alleged Biden-era cover-up

      August 30, 2025
    • Lawyers for Cook, DOJ trade blows at high-stakes clash over Fed firing

      August 29, 2025
    • Olivier v. City of Brandon Brief: Protecting the Right to Recover for Free Speech Violations

      August 29, 2025
    • Is Putin stringing Trump along to sidestep US sanctions while bombing Ukraine?

      August 29, 2025
    • House investigators nix Mueller testimony in Epstein probe over health concerns

      August 29, 2025
    • Shakedowns and a Sovereign Wealth Fund

      August 29, 2025

    Categories

    • Business (8,920)
    • Investing (2,256)
    • Politics (16,523)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved