UK approves plans for Chinese mega-embassy

The UK has approved China's plans for a huge new embassy in central London, despite opponents warning it could be used as a base for spying and pose security risks.

A government spokesperson said intelligence agencies had been involved throughout the process, and consolidating China's diplomatic premises into a single site would bring "clear security advantages".

The decision, which has repeatedly been delayed, had posed a challenge for the government, as it seeks to balance its desire for closer ties with Beijing with warnings of the threat posed by China.

It comes as Sir Keir Starmer is expected to visit Beijing early this year, becoming the first UK prime minister to do so since 2018.

In a letter, the housing department confirmed that Housing Secretary Steve Reed, who is responsible for planning policy, had given permission for the development to go ahead, subject to certain conditions.

The site at Royal Mint Court is close to the City of London and fibre optic cables that carry vast quantities of highly sensitive data, sparking concerns they could be used by China to infiltrate the UK's financial system.

However, in its decision letter, the department said there was no suggestion the use of the site as an embassy would interfere with the cables.

It added that no bodies with responsibility for national security, including the Home Office and the Foreign Office, had raised concerns or objected to the proposal on the basis of the proximity of the cables.

A government spokesperson said countries establishing embassies was a "normal part of international relations".

"National security is our first duty. Intelligence agencies have been involved throughout the process and an extensive range of measures have been developed to manage any risks," they added.

Opposition parties and some Labour MPs had called for the project to be blocked. Local residents also oppose the plans and are planning a legal challenge.

At 20,000 square metres, the embassy would be the biggest of its kind anywhere in Europe.

Approval for the London embassy has long been a priority for China's government, which bought the site for £255m in 2018.

The plans were initially rejected by Tower Hamlets Council in 2022 over safety concerns, but when China resubmitted its application in 2024 the government took over the decision.

Meanwhile, the UK is waiting for its own £100m plan to redevelop the British embassy in Beijing to be approved by China's authorities.

Rejecting China's plans would have risked setting back diplomatic relations between the two countries.

Since winning power, Labour has sought closer trade ties with China, with Chancellor Rachel Reeves among several senior government figures to visit the country.

However, critics have argued the threat of spying by the Chinese state and its intimidation against dissidents abroad are reasons for a more cautious relationship.