Dispute over China's Embassy in London Strains Ties with Britain

An exterior view of the proposed site for the new China Embassy, near to Tower Bridge in London, Britain, June 23, 2023. REUTERS/Hannah McKay/File Photo
An exterior view of the proposed site for the new China Embassy, near to Tower Bridge in London, Britain, June 23, 2023. REUTERS/Hannah McKay/File Photo
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Dispute over China's Embassy in London Strains Ties with Britain

An exterior view of the proposed site for the new China Embassy, near to Tower Bridge in London, Britain, June 23, 2023. REUTERS/Hannah McKay/File Photo
An exterior view of the proposed site for the new China Embassy, near to Tower Bridge in London, Britain, June 23, 2023. REUTERS/Hannah McKay/File Photo

It started as a local dispute over China's plans to build a new embassy next to the Tower of London - pitting the world's second biggest superpower against an inner-city borough that blocked the project.
Just over seven months later, it is escalating into a diplomatic standoff that, officials from both countries told Reuters, is undermining efforts to repair their badly damaged relations.
Two Chinese and three British officials told Reuters the Chinese government had expressed its frustration over the failure to grant planning permission for its embassy at official-level meetings.
That has led officials in Britain, which is trying to forge deeper economic ties post-Brexit, to fear it could also halt their own plans to rebuild its embassy in Beijing. Space is already running short on the existing cramped site. One visitor said a squash court had to be turned into an office.
The officials say the embassy spat has undermined attempts by British Prime Minister Rishi Sunak to forge a new approach to China, one which would balance London's national security interests with better cooperation on trade and climate change.
It is a far cry from 2015 when former Prime Minister David Cameron and President Xi Jinping shared beer and fish and chips at an English village pub and declared a "golden era" for London-Beijing relations.
China first announced plans in 2018 for a 700,000-square-foot embassy on the former site of Britain's the Royal Mint - the official maker of British coins - its biggest mission in Europe, almost twice the size of its one in Washington.
It bought the land - around 4 miles from its current base in central London - for about 255 million pounds ($311 million). But while unelected planning officers accepted the proposal, local elected councilors overruled them, rejecting it on security grounds and the impact on residents.
Chinese officials told Reuters they suspected the British government had plotted to stop the embassy plans and orchestrated the local opposition.
They have raised their unhappiness about being unable to relocate to the new site in meetings with British counterparts in recent months, according to four people involved or with knowledge of the talks. Reuters could not determine in exactly how many meetings the issue had been raised.
"It is definitely political," one Chinese official said.
British officials - caught between the demands of Beijing, politicians and some equally vocal local residents - have dismissed those accusations, saying councils make their own decisions.
The stakes are high - China has been the second-largest source of foreign direct investment into London for the last decade, behind the United States.
"It is very messy and a headache we could do without," one British official said. Britain's housing and foreign ministries declined to comment.
DEADLINE LOOMING
The British government has been keen to distance itself from the whole planning process. But it will most probably need to pick a side soon.
An Aug. 11 deadline looms for Beijing to appeal against the planning refusal.
The first step in any such appeal would require an application to an independent Planning Inspectorate reviewer.
If the Planning Inspectorate finds the application contentious or nationally significant it would go to British housing minister Michael Gove, who could also "call in" the project if he wants to take the final decision himself.
And that is when it gets more difficult.
Concerns about the crackdown on freedoms in Hong Kong, reports of human rights abuses against the Uyghur people in Xinjiang, and suspicion over China trying to penetrate security systems have all intervened. Beijing has denied all the charges.
There have been no leader-level face-to-face meetings since 2018. Planned talks between Sunak and Xi on the sidelines of a global summit in November last year were abruptly canceled. The last telephone call between the nations' leaders came more than a year ago.
Like other European states, Sunak's government has adopted a policy of seeking to neutralize security threats posed by China - notably by banning some Chinese technology — while seeking to engage in areas such as trade, investment and climate change.
Iain Duncan Smith, a former leader of Sunak's governing Conservative Party, wants it to go further, saying a decision to block the embassy would show how Britain prioritizes national security in its relationship with China.
The government's approach to China "is all very mushy. We need to be able to say we are not prepared to kow-tow", he told Reuters.
'OUT OF OUR HANDS'
The Chinese foreign ministry in a statement to Reuters last month urged the British government to meet its "international obligation" to help it build a new embassy and said China wants to find a solution "on the basis of reciprocity and mutual benefit".
British officials, who declined to be identified, said they feared that London's plan to rebuild its embassy in Beijing would be affected.
An application had been submitted but permission had not yet been granted, one official said. It was not clear when the application was submitted.
Another official said they see the planning applications as two separate processes.
The officials spoke on the condition of anonymity, due to the sensitivity of the subject.
And then there are the people of Tower Hamlets to take into account.
During the original planning process, some residents from the area, which has a big Muslim population, raised what they said was China's persecution of the Uyghurs.
At one point, councilors wanted to hammer their point home by renaming local streets or new buildings Uyghur Court and Tiananmen Square - plans that were never adopted.
Residents say they are also worried about more local security issues.
About 300 of them live in flats that back onto the site. China became the freeholder of these properties when it purchased the land and is now, effectively, their landlord.
Dave Lake, the chair of the Royal Mint Court Residents Association that represents the home owners, said local opposition might decline if China promised never to enter the flats or take actions such as banning flags.
But his biggest concern now was that Britain and China would force through a deal, ignoring the locals.
"I feel hopeless. It is completely out of our hands and it doesn't sound good at all”, he said.



IAEA Pulls Inspectors from Iran as Standoff over Access Drags on

FILE PHOTO: nternational Atomic Energy Agency (IAEA) Director General Rafael Grossi waits for an emergency meeting of the agency’s Board of Governors to discuss the situation in Iran following the US attacks on the country’s nuclear facilities, at the IAEA headquarters in Vienna, Austria, June 23, 2025. REUTERS/Elisabeth Mandl/File Photo
FILE PHOTO: nternational Atomic Energy Agency (IAEA) Director General Rafael Grossi waits for an emergency meeting of the agency’s Board of Governors to discuss the situation in Iran following the US attacks on the country’s nuclear facilities, at the IAEA headquarters in Vienna, Austria, June 23, 2025. REUTERS/Elisabeth Mandl/File Photo
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IAEA Pulls Inspectors from Iran as Standoff over Access Drags on

FILE PHOTO: nternational Atomic Energy Agency (IAEA) Director General Rafael Grossi waits for an emergency meeting of the agency’s Board of Governors to discuss the situation in Iran following the US attacks on the country’s nuclear facilities, at the IAEA headquarters in Vienna, Austria, June 23, 2025. REUTERS/Elisabeth Mandl/File Photo
FILE PHOTO: nternational Atomic Energy Agency (IAEA) Director General Rafael Grossi waits for an emergency meeting of the agency’s Board of Governors to discuss the situation in Iran following the US attacks on the country’s nuclear facilities, at the IAEA headquarters in Vienna, Austria, June 23, 2025. REUTERS/Elisabeth Mandl/File Photo

The UN nuclear watchdog said on Friday it had pulled its last remaining inspectors from Iran as a standoff over their return to the country's nuclear facilities bombed by the United States and Israel deepens.

Israel launched its first military strikes on Iran's nuclear sites in a 12-day war three weeks ago. The International Atomic Energy Agency's inspectors have not been able to inspect Iran's facilities since then, even though IAEA chief Rafael Grossi has said that is his top priority.

Iran's parliament has now passed a law to suspend cooperation with the IAEA until the safety of its nuclear facilities can be guaranteed. While the IAEA says Iran has not yet formally informed it of any suspension, it is unclear when the agency's inspectors will be able to return to Iran.

"An IAEA team of inspectors today safely departed from Iran to return to the Agency headquarters in Vienna, after staying in Tehran throughout the recent military conflict," the IAEA said on X.

According to Reuters, diplomats said the number of IAEA inspectors in Iran was reduced to a handful after the June 13 start of the war. Some have also expressed concern about the inspectors' safety since the end of the conflict, given fierce criticism of the agency by Iranian officials and Iranian media.

Iran has accused the agency of effectively paving the way for the bombings by issuing a damning report on May 31 that led to a resolution by the IAEA's 35-nation Board of Governors declaring Iran in breach of its non-proliferation obligations.

IAEA chief Rafael Grossi has said he stands by the report. He has denied it provided diplomatic cover for military action.

IAEA WANTS TALKS

Foreign Minister Abbas Araqchi said on Thursday Iran remained committed to the nuclear Non-Proliferation Treaty (NPT).

"(Grossi) reiterated the crucial importance of the IAEA discussing with Iran modalities for resuming its indispensable monitoring and verification activities in Iran as soon as possible," the IAEA said.

The US and Israeli military strikes either destroyed or badly damaged Iran's three uranium enrichment sites. But it was less clear what has happened to much of Iran's nine tons of enriched uranium, especially the more than 400 kg enriched to up to 60% purity, a short step from weapons grade.

That is enough, if enriched further, for nine nuclear weapons, according to an IAEA yardstick. Iran says its aims are entirely peaceful but Western powers say there is no civil justification for enriching to such a high level, and the IAEA says no country has done so without developing the atom bomb.

As a party to the NPT, Iran must account for its enriched uranium, which normally is closely monitored by the IAEA, the body that enforces the NPT and verifies countries' declarations. But the bombing of Iran's facilities has now muddied the waters.

"We cannot afford that .... the inspection regime is interrupted," Grossi told a press conference in Vienna last week.