After six years of diplomatic wrangling and planning disputes, the UK government is poised to grant final approval for China's controversial new 'mega embassy' in London. A decision on the long-delayed planning application is expected imminently, with a deadline of 20 January looming.
A Saga Born from a £255m Purchase
The protracted saga began in 2018 when the Chinese government paid £255 million for the prestigious Royal Mint Court site, adjacent to the Tower of London. The plan was to construct a sprawling diplomatic complex that would be China's largest in Europe. The deal was brokered by Eddie Lister, a close aide to then-Foreign Secretary Boris Johnson.
However, the project hit a major obstacle when Tower Hamlets council refused planning permission. The UK government at the time declined to intervene, allowing the application to expire—a move that reportedly left officials in Beijing "gobsmacked" that local authority decisions could impact state-to-state relations.
Diplomatic Stalemate and a Direct Appeal to Starmer
The embassy issue became a significant sticking point in bilateral relations. China effectively linked its approval of the UK's plans to redevelop its own dilapidated embassy in Beijing to the progress of its London application. Professor Steve Tsang of the SOAS China Institute noted this allowed Beijing to "block whatever requests London has made that Beijing is not comfortable about."
The matter was elevated to the highest level when Chinese leader Xi Jinping raised it directly with Prime Minister Keir Starmer during their first phone call in August 2024. Following this, and after Labour entered government, China reapplied for planning permission. UK ministers subsequently "called in" the decision, taking it out of the hands of Tower Hamlets council.
Security Concerns and Political Opposition
The proposed embassy has faced opposition from MPs across the political spectrum and from local residents, who have staged regular protests at the Royal Mint Court site. Concerns have been raised about the site's proximity to data cables running to the City of London and the potential for espionage from an enlarged Chinese diplomatic presence.
Despite this, British security services are understood to believe they can manage the associated risks. The government has insisted the planning process is independent, with a Foreign Office spokesperson stating: "It goes without saying that national security has been a priority through this process."
Approval is widely anticipated to smooth relations ahead of Keir Starmer's expected visit to China at the end of January. This would be the first trip by a UK prime minister since Theresa May's 2018 visit, which yielded £9bn in trade deals. A similar outcome would be a welcome boost for Starmer, following Chancellor Rachel Reeves's visit last year which resulted in agreements worth a more modest £600m.
Experts warn that rejection would have severe consequences. Professor Kerry Brown of King's College London stated that cooperation in areas like AI would be impeded, noting "China is a big player that has other options. Britain is more modest." He also suggested the embassy issue would remain a "perpetual sore" in relations regardless of the outcome.
Even if approved, the matter may not be concluded. Local residents and members of the Chinese diaspora, including Hongkongers, Tibetans and Uyghurs, are crowdfunding for a potential legal challenge, ensuring this diplomatic and planning saga may yet have further chapters to come.
