New City minister's pro-China stance under scrutiny


Questions have arisen regarding whether new City Minister Emma Reynolds can make decisions concerning the UK’s dealings with China. Reynolds was appointed by Sir Keir Starmer after Tulip Siddiq’s resignation amid pressure over an anti-corruption investigation in Bangladesh. Reynolds’s background raises concerns about conflict of interest, as she served as the director of public affairs at a banking trade group that lobbied for fewer restrictions on Chinese businesses.

Despite this concern, the Prime Minister’s official spokesperson has repeatedly refused to confirm what Reynolds’s appointment means for her ability to make decisions about China. He has only stated that Reynolds “brings a wealth of experience to the role” and that “the process for the ministerial appointments will be followed in the usual way.”

The UK government has been working to strengthen financial services ties with China to boost economic growth, and Siddiq was set to join Chancellor Rachel Reeves on a delegation to China last week. However, she continued to stay in the UK to clear her name after being implicated in an investigation involving embezzlement of up to £3.9bn from infrastructure spending in Bangladesh. Siddiq’s aunt is the former Bangladesh Prime Minister Sheikh Hasina, who went into exile after being deposed last year.

Reynolds, Siddiq’s replacement as Economic Secretary to the Treasury, faced scrutiny after Bloomberg reported her involvement in lobbying the previous Conservative government not to include China under the “enhanced tier” of the Foreign Influence Registration Scheme. The Labour government has yet to enforce the law. Her lobby group argued that the tier would deter investment from China and cause negative publicity. Reynolds is also the former treasurer of the all-party parliamentary group on China. But there are questions about whether her connections to the banking trade group and her lobbying activity regarding China necessitate her recusal from decision-making related to China.

Despite these potential conflicts of interest, the Prime Minister’s spokesperson assured that the government has an established process for the management of ministers’ interests. The spokesperson also failed to confirm whether Reynolds has been prevented from making decisions about China or whether any specific actions have been taken to clarify her role. The situation has become controversial, with the Conservative shadow chancellor criticizing Sir Keir for not resolving Siddiq’s position sooner and stating the government is in a “curious situation” with her replacement as Economic Secretary

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