UK chancellor reaffirms fiscal rules during China visit amid market instability

UK Chancellor Rachel Reeves reaffirmed her commitment to strict fiscal rules during a visit to China, despite recent market instability. She announced agreements worth £600 million for the UK economy over the next five years. The pound recently fell to a 14-month low against the US dollar, raising concerns about the UK’s financial stability. Reeves emphasized that her fiscal rules are essential for economic growth, even as the government faces pressure to make deeper budget cuts. During her trip, Reeves met with Chinese officials to discuss trade and investment, highlighting the need for a stable relationship. She stated that economic ties should not compromise national security and acknowledged ongoing human rights issues in China.