Chancellor heads to China in search of growth amid surging borrowing costs

Britain's chancellor Rachel Reeves emphasized that engaging with China is crucial for economic growth. With borrowing costs rising, she aims to solidify trade ties to bolster the economy.

Reeves stated, 'Non-negotiable' fiscal rules underline her commitment to economic stability, which she sees as essential for restoring market confidence amidst high inflation and soaring debt costs.

Paul Johnson highlighted the risks of exceeding borrowing limits, stating that failure to adhere to fiscal discipline would lead to market trembling and increasing yield pressures.

Reeves criticized past isolationist policies, arguing that stronger trade relations with China are necessary to align the UK with partners like France and Germany, who benefit from closer ties.

Read at Business Matters