• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
PoliticsChina
Europe

U.K. faces diplomatic headache with China as President Xi turns up the heat on $327 million plan for lavish new London embassy

By
Joe Jackson
Joe Jackson
and
AFP
AFP
Down Arrow Button Icon
By
Joe Jackson
Joe Jackson
and
AFP
AFP
Down Arrow Button Icon
December 17, 2024, 5:31 AM ET
The site for the new Chinese embassy in London was reportedly acquired for $327 million in 2018.
The site for the new Chinese embassy in London was reportedly acquired for $327 million in 2018.HENRY NICHOLLS/AFP via Getty Images

As Britain’s new Labour government bids to reset long-fraught ties with China amid a suspected spy scandal, another issue could mar relations: Beijing’s controversial plans to open the largest embassy in the UK.

Recommended Video

China has for several years been trying to relocate its embassy, currently in the British capital’s upmarket Marylebone district, to a sprawling historic site in the shadow of the Tower of London.

The move east to the complex opposite the UNESCO World Heritage site housing the Tower, and adjacent to the iconic Tower Bridge, has sparked fierce opposition from nearby residents, rights groups, China-hawks and others.

Already rejected by local officials, it now appears to be a key issue in bilateral ties, and featured in early talks between President Xi Jinping and Prime Minister Keir Starmer. It comes amid a new row over allegations of suspected spying by a Chinese businessman with links to Prince Andrew.

The British leader, elected in July, wants more engagement with Beijing, following years of deteriorating relations over various issues, in particular China’s rights crackdown in Hong Kong.

Last month Starmer became the first UK prime minister since 2018 to meet Xi, when the pair held talks at the G20 in Brazil.

With TV cameras rolling, he noted Xi had raised the embassy in an earlier call and reassured him that his government had “taken action” by “calling in” its embassy application.

The decision means a national planning inspector will now hold a public inquiry into the scheme, but Communities Secretary Angela Rayner will make the final decision.

Governments can “call in” developments on various grounds, including issues going beyond “local importance” and impacting other governments or national security.

‘Shocked’

Despite Starmer also telling Xi that “we have to follow the legal process and timeline”, the intervention has unnerved opponents of the new embassy.

“I was a bit shocked,” said exiled Hong Kong dissident Simon Cheng, who lives near the proposed embassy.

“I knew that China’s… plans would be quite important (in bilateral relations). I hadn’t ever thought that it would be escalated to the top level.”

He worries Starmer’s emphasis on economic growth, and improved China ties, could trump other considerations.

A former British consulate staffer in Hong Kong granted UK asylum after allegedly being tortured by Chinese secret police, Cheng also fears “massive surveillance” at the new site.

Housing the Royal Mint — the official maker of British coins — for nearly two centuries, it was earlier home to a 1348-built Cistercian abbey but is currently derelict.

Beijing bought the site for a reported $327 million in 2018.

It comprises several “listed buildings” of historical note, and before the government’s intervention, any changes had required permission from the local authority, Tower Hamlets Council.

In 2022 its councillors unanimously rejected China’s plans, which include designs by the renowned David Chipperfield Architects firm. In July, Beijing resubmitted the proposals almost entirely unchanged.

Conservative councillor Peter Golds has been a persistent opponent.

“Can you imagine the French or the Italians permitting the most famous World Heritage site in their country to have a gigantic embassy next to it? And not just any embassy!” he told AFP.

“It’s a prestige site… it’d be a bit like us going to the Forbidden City,” he added, referring to Beijing’s imperial palace complex. “What an insult!”

‘Overpowering’

The site adjoins a housing complex, and residents are most concerned about security implications.

“A small explosion from a car or a van would cause devastation,” Dave Lake, who leads a residents’ association fighting the plans, told AFP, voicing concerns that the embassy could become a focus of anti-China protests.

Residents recently began fundraising to pay for the legal representation now needed to maintain what Lake considers a David-versus-Goliath battle.

“It’s overpowering — it’s almost as if they’re stamping on you,” he said.

There are reports Beijing intends to link the issue with British plans to redevelop its embassy and ambassador’s residence there.

A Chinese embassy statement said “host countries have the international obligation to support and facilitate the building of the premises of diplomatic missions”.

It added approval would help promote “friendship between the Chinese and British people and the development of bilateral relations”.

James Jennion, associate fellow at the British Foreign Policy Group, said it was “clearly a priority” for China, noting embassies are “status symbols”.

He added the government “calling in” the application “made this more of a “bilateral issue” as well as likely creating future “domestic headaches”.

“This will make it tougher to assess based on practical factors, and will certainly be a defining feature of UK-China relations until a decision is made.”

Join us at the Fortune Workplace Innovation Summit May 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.
About the Authors
By Joe Jackson
See full bioRight Arrow Button Icon
By AFP
See full bioRight Arrow Button Icon

Latest in Politics

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

Latest in Politics

PoliticsVenezuela
Venezuela slow-walks prisoner releases with 11 freed while over 800 remain locked up, including son-in-law of opposition presidential candidate
By Regina Garcia Cano and The Associated PressJanuary 10, 2026
9 hours ago
PoliticsICE
Thousands protest in Minneapolis after deadly ICE shooting as agents continue raids throughout city. ‘We’re all living in fear right now’
By Rebecca Santana and The Associated PressJanuary 10, 2026
9 hours ago
Middle EastU.S. military
U.S. launches new retaliatory strikes against ISIS in Syria after deadly ambush
By The Associated PressJanuary 10, 2026
10 hours ago
PoliticsVenezuela
Trump order says Venezuelan oil revenue is being held by the U.S. for ‘governmental and diplomatic purposes’ and not subject to private claims
By Seung Min Kim and The Associated PressJanuary 10, 2026
12 hours ago
PoliticsGreenland
If Trump takes control of Greenland, he would have to build a welfare state ‘that he doesn’t want for his own citizens,’ expert says
By Emma Burrows, Ben Finley and The Associated PressJanuary 10, 2026
13 hours ago
EconomyU.S. debt
As U.S. debt soars past $38 trillion, the flood of corporate bonds is a growing threat to the Treasury supply
By Jason MaJanuary 10, 2026
13 hours ago

Most Popular

placeholder alt text
Health
Bill Gates warns the world is going 'backwards' and gives 5-year deadline before we enter a new Dark Age
By Eleanor PringleJanuary 9, 2026
2 days ago
placeholder alt text
C-Suite
Silicon Valley billionaire flies coach out of solidarity: 'If I'm going to ask my employees to do it, I need to do it, too'
By Nick LichtenbergJanuary 9, 2026
2 days ago
placeholder alt text
Success
Diary of a CEO founder says he hired someone with 'zero' work experience because she 'thanked the security guard by name' before the interview
By Emma BurleighJanuary 8, 2026
3 days ago
placeholder alt text
Economy
As U.S. debt soars past $38 trillion, the flood of corporate bonds is a growing threat to the Treasury supply
By Jason MaJanuary 10, 2026
13 hours ago
placeholder alt text
Economy
Gen Z is rebelling against the economy with ‘disillusionomics,’ tackling near 6-figure debt by turning life into a giant list of income streams
By Jacqueline MunisJanuary 10, 2026
22 hours ago
placeholder alt text
Success
Bill Gates donated record $8 billion to Melinda French Gates' foundation as part of their divorce settlement
By Marco Quiroz-GutierrezJanuary 9, 2026
2 days ago

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.