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Given gilt yields are rising, the pound is falling and, all things considered, markets look pretty hairy back in the UK, it’s quite likely Rachel Reeves’s trip to China gets overshadowed by noises off.

There’s a chance the dominant narrative is not about China itself, but about why she didn’t cancel the trip.

But make no mistake: this visit is a big deal. A very big deal – potentially one of the single most interesting moments in recent British economic policy.

Why? Because the UK is doing something very interesting and quite counterintuitive here. It is taking a gamble. For even as nearly every other country in the developed world cuts ties and imposes tariffs on China, this new Labour government is doing the opposite – trying to get closer to the world’s second-biggest economy.

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How much do we trade with China?

The chancellor‘s three-day visit to Beijing and Shanghai marks the first time a UK finance minister has travelled to China since Philip Hammond‘s 2017 trip, which in turn followed a very grand mission from George Osborne in 2015.

Back then, the UK was attempting to double down on its economic relationship with China. It was encouraging Chinese companies to invest in this country, helping to build our next generation of nuclear power plants and our telephone infrastructure.

But since then the relationship has soured. Huawei has been banned from providing that telecoms infrastructure and China is no longer building our next power plants. There has been no “economic and financial dialogue” – the name for these missions – since 2019, when Chinese officials came to the UK. And the story has been much the same elsewhere in the developed world.

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In the intervening period, G7 nations, led by the US, have imposed various tariffs on Chinese goods, sparking a slow-burn trade war between East and West. The latest of these tariffs were on Chinese electric vehicles. The US and Canada imposed 100% tariffs, while the EU and a swathe of other nations, from India to Turkey, introduced their own, slightly lower tariffs.

But (save for Japan, whose consumers tend not to buy many Chinese cars anyway) there is one developed nation which has, so far at least, stood alone, refusing to impose these extra tariffs on China: the UK.

The UK sticks out then – diplomatically (especially as the new US president comes into office, threatening even higher and wider tariffs on China) and economically. Right now no other developed market in the world looks as attractive to Chinese car companies as the UK does. Chinese producers, able thanks to expertise and a host of subsidies to produce cars far cheaper than those made domestically, have targeted the UK as an incredibly attractive prospect in the coming years.

And while the European strategy is to impose tariffs designed to taper down if Chinese car companies commit to building factories in the EU, there is less incentive, as far as anyone can make out, for Chinese firms to do likewise in the UK. The upshot is that domestic producers, who have already seen China leapfrog every other nation save for Germany, will struggle even more in the coming year to contend with cheap Chinese imports.

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Why is Rachel Reeves flying to China?

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Whether this is a price the chancellor is willing to pay for greater access to the Chinese market is unclear. Certainly, while the UK imports more than twice as many goods from China as it sends there, the country is an attractive market for British financial services firms. Indeed, there are a host of bank executives travelling out with the chancellor for the dialogue. They are hoping to boost British exports of financial services in the coming years.

Still – many questions remain unanswered:

• Is the chancellor getting closer to China with half an eye on future trade negotiations with the US?

• Is she ready to reverse on this relationship if it helps procure a deal with Donald Trump?

• Is she comfortable with the impending influx of cheap Chinese electric vehicles in the coming months and years?

• Is she prepared for the potential impact on the domestic car industry, which is already struggling in the face of a host of other challenges?

• Is that a price worth paying for more financial access to China?

• What, in short, is the grand strategy here?

These are all important questions. Unfortunately, unlike in 2015 or 2017, the Treasury has decided not to bring any press with it. So our opportunities to find answers are far more limited than usual. Given the significance of this economic moment, and of this trip itself, that is desperately disappointing.

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‘The capital is under attack’: Russian drones launched over Kyiv after Moscow targeted

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'The capital is under attack': Russian drones launched over Kyiv after Moscow targeted

Russia has launched a “massive” drone and missile attack on the Ukrainian capital overnight, after Moscow itself was targeted.

Amid flailing peace talks, the Kremlin’s nightly attacks on Ukraine continued.

Ukraine war – follow the latest updates

A large-scale Russian attack through the night into Sunday injured at least 11 in Kyiv and killed three people in towns surrounding the capital.

There were attacks elsewhere as well, including drone strikes in Mykolaiv, where a residential building was hit.

An apartment building destroyed after a Russian attack in Mykolaiv.
Pic: State Emergency Service of Ukraine
Image:
An apartment building destroyed after a Russian attack in Mykolaiv. Pic: State Emergency Service of Ukraine

‘Massive’ attack

In Kyiv, the city’s administration warned “the night will be difficult”, as people were urged to remain in shelters.

The city’s mayor Vitaliy Klitschko described it as a “massive” attack.

He said: “Explosions in the city. Air defence forces are working. The capital is under attack by enemy UAVs. Do not neglect your safety! Stay in shelters!”

It came after at least 15 people were injured in attacks the night prior.

Russia claimed it also faced a Ukrainian drone attack on Sunday, and that it intercepted and destroyed around 100 of them near Moscow and across Russia’s central and southern regions.

A municipality worker cleans up after a Russian drone strike on Kyiv.
Pic: Reuters
Image:
A municipality worker cleans up after a Russian drone strike on Kyiv. Pic: Reuters

Russia ‘dragging out the war’

Meanwhile, Russia and Ukraine continued a prisoner exchange, marking a rare moment of cooperation in the war.

Amid the most recent attacks, Ukrainian President Volodymyr Zelenskyy repeated his calls for sanctions on Russia.

Russia “fills each day with horror and murder” and is “simply dragging out the war”, he said.

A resident looks at an apartment building that was damaged in a Russian drone strike.
Pic: Reuters
Image:
A resident looks at an apartment building that was damaged in a Russian drone strike. Pic: Reuters

“All of this demands a response – a strong response from the United States, from Europe, and from everyone in the world who wants this war to end,” Mr Zelenskyy added.

Every day “gives new grounds for sanctions against Russia”, he said, and each day without pressure proves the “war will continue”.

Ukraine, meanwhile, is ready for “any form of diplomacy that delivers real results”.

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Nine of Gazan doctor’s 10 children killed in Israeli strike on Khan Younis

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Nine of Gazan doctor's 10 children killed in Israeli strike on Khan Younis

Nine of a doctor’s 10 children have been killed in an Israeli missile strike on their home in Gaza, which also left her surviving son badly injured and her husband in a critical condition.

Warning: This article contains details of child deaths

Alaa Al Najjar, a paediatrician at Al Tahrir Clinic in the Nasser Medical Complex, was at work during the attack on her home, south of the city of Khan Younis in southern Gaza, on Friday.

Graphic footage shared by the Hamas-run Palestinian Civil Defence shows the bodies of at least seven small children being pulled from the rubble.

Rescuers can be seen battling fires and searching through a collapsed building, shouting out when they locate a body, before bringing the children out one by one and wrapping their remains in body bags.

In the footage, Dr Al Najjar’s husband, Hamdi Al Najjar, who is also a doctor, is put on to a stretcher and then carried to an ambulance.

The oldest of their children was only 12 years old, according to Dr Muneer Alboursh, the director general of Gaza’s health ministry, which is run by Hamas.

Rescuers removing the children's bodies from the rubble. Pic: Palestinian Civil Defence
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Nine children were killed in the strike. Pic: Palestinian Civil Defence

“This is the reality our medical staff in Gaza endure. Words fall short in describing the pain,” he wrote in a social media post.

“In Gaza, it is not only healthcare workers who are targeted – Israel’s aggression goes further, wiping out entire families.”

Rescuers placing the children's bodies in a van. Pic: Palestinian Civil Defence
Image:
Pic: Palestinian Civil Defence

British doctors describe ‘horrific’ and ‘unimaginable’ attack

Two British doctors working at Nasser Hospital described the attack as “horrific” and “unimaginable” for Dr Al Najjar.

Speaking in a video diary on Friday night, Dr Graeme Groom said his last patient of the day was Dr Al Najjar’s 11-year-old son, who was badly injured and “seemed much younger as we lifted him on to the operating table”.

Hamdi Al Najjar, Dr Al Najjar's husband who is also a doctor, being taken into hospital. Pic: Palestinian Civil Defence
Image:
Hamdi Al Najjar, Dr Al Najjar’s husband who is also a doctor, was taken to hospital. Pic: Palestinian Civil Defence

The strike “may or may not have been aimed at his father”, Dr Groom said, adding that the man had been left “very badly injured”.

Dr Victoria Rose said the family “lived opposite a petrol station, so I don’t know whether the bomb set off some massive fire”.

Rescuers unload the children's bodies. Pic: Palestinian Civil Defence
Image:
Pic: Palestinian Civil Defence

‘No political or military connections’

Dr Groom added: “It is unimaginable for that poor woman, both of them are doctors here.

“The father was a physician at Nasser Hospital. He had no political and no military connections. He doesn’t seem to be prominent on social media, and yet his poor wife is the only uninjured one, who has the prospect of losing her husband.”

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Nineteen of Gaza’s hospitals remain operational, all of them are overwhelmed with the number of patients and a lack of supplies

He said it was “a particularly sad day”, while Dr Rose added: “That is life in Gaza. That is the way it goes in Gaza.”

Sky News has approached the Israeli Defence Forces for comment.

Read more:
Mum of emaciated baby in Gaza says ‘I don’t want to lose her’
Dad wrongly pronounced dead in Israeli bombing killed in airstrike

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Israel’s war against Hamas in Gaza began when the militant group stormed across the border into Israel on 7 October 2023, killing some 1,200 people, most of them civilians, and abducting 251 others.

Israel’s military response has flattened large areas of Gaza and killed more than 53,000 Palestinians, mostly women and children, according to Gaza’s Hamas-run health ministry, which does not differentiate between civilians and combatants in its count.

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UN’s Antonio Guterres condemns ‘teaspoon’ of aid allowed into Gaza after dozens die in airstrikes

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UN's Antonio Guterres condemns 'teaspoon' of aid allowed into Gaza after dozens die in airstrikes

The head of the UN has said Israel has only authorised for Gaza what amounts to a “teaspoon” of aid after at least 60 people died in overnight airstrikes.

UN secretary general Antonio Guterres said on Friday the supplies approved so far “amounts to a teaspoon of aid when a flood of assistance is required,” adding “the needs are massive and the obstacles are staggering”.

He warned that more people will die unless there is “rapid, reliable, safe and sustained aid access”.

A woman walks amidst rubble at the site of an Israeli strike on a house in Jabalia, in the northern Gaza Strip.
Pic: Reuters
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A woman at the site of an Israeli strike in Jabalia, northern Gaza. Pic: Reuters

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Gaza: ‘Loads of children with huge burns’

Israel says around 300 aid trucks have been allowed through since it lifted an 11-week blockade on Monday, but according to Mr Guterres, only about a third have been transported to warehouses within Gaza due to insecurity.

The IDF said 107 vehicles carrying flour, food, medical equipment and drugs were allowed through on Thursday.

Many of Gaza’s two million residents are at high risk of famine, experts have warned.

Meanwhile, at least 60 people have been killed by Israeli airstrikes across Gaza overnight.

More on Gaza

Ten people died in the southern city of Khan Younis, and deaths were also reported in the central town of Deir al-Balah and the Jabaliya refugee camp in the north, according to the Nasser, Al-Aqsa and Al-Ahli hospitals where the bodies were brought.

Palestinians carry a body at the site of an Israeli strike on a house, in Jabalia, northern Gaza .
Pic: Reuters
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A body is carried out of rubble after an Israeli strike in Jabalia, northern Gaza. Pic: Reuters

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‘Almost everyone depends on aid’ in Gaza

The latest strikes came a day after two Israeli embassy workers were killed in Washington.

The suspect, named as 31-year-old Elias Rodriguez from Chicago, Illinois, told police he “did it for Gaza”.

Israeli Prime Minister Benjamin Netanyahu accused Sir Keir Starmer, Emmanuel Macron and Mark Carney of fuelling antisemitism following the shootings.

The leaders of the UK, France and Canada are “on the wrong side of humanity and (…) history”, he said, after they threatened “concrete action” against Israel this week if it continues its “egregious” military operations in Gaza.

Mr Netanyahu also accused Sir Keir, Mr Macron and Mr Carney of siding with “mass murderers, rapists, baby killers and kidnappers”.

Palestinians search for casualties at the site of an Israeli strike on a house in Jabalia, in the northern Gaza Strip May 23, 2025. REUTERS/Mahmoud Issa
Image:
Palestinians search for casualties in Jabalia, northern Gaza. Pic: Reuters

But UK government minister Luke Pollard told Sky News on Friday morning he “doesn’t recognise” Mr Netanyahu’s accusation.

Earlier this week, Mr Netanyahu said he was recalling negotiators from the Qatari capital, Doha, after a week of ceasefire talks failed to bring results. A working team will remain.

The war in Gaza began when Hamas-led militants attacked southern Israel on 7 October 2023, killing some 1,200 people, mostly civilians, and kidnapping 251 others.

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Read more on Sky News:
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The militants are still holding 58 captives, around a third of whom are believed to be alive, after most of the rest were returned in ceasefire agreements or other deals.

Israel’s offensive, which has destroyed large swaths of Gaza, has killed more than 53,000 Palestinians, mostly women and children, according to Gaza’s Hamas-run health ministry.

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