China's Mega-Embassy Just Got The Green Light From Labour. Why Has It Been So Controversial?

The government has finally given China its approval to build a mega-embassy in London after years of pushback from concerned critics.

Despite fears Beijing could use the building for espionage, to intimidate overseas dissidents or to disrupt Britain’s sensitive financial cabling, prime minister Keir Starmer and housing secretary Steve Reed finally gave the green light on Tuesday.

But security fears remain. Here’s what you need to know.

What Do We Know About The Mega-Embassy?

The embassy will be set up on the old Royal Mint Court near the Tower of London and will replace seven separate buildings across the the city.

At 20,000 square metres, it will be the biggest embassy of its kind anywhere in Europe – and near the fibre optic cables which carry vast quantities of highly sensitive data for the UK financial sector.

China’s government has been pushing for the mega-embassy ever since 2018, when it first bought the site for £255 million.

It is expected China’s diplomats would live on site, too.

But those construction plans hit a roadblock when they were rejected by the Tower Hamlets Council in 2022 over safety concerns.

Beijing then resubmitted the application in 2024 and the Labour government finally gave its approval on Tuesday.

Why Did Starmer Grant Approval Now?

It comes days before Starmer is set to visit China at the end of the month – the first UK prime minister to do so since Theresa May in 2018.

Rejecting the plan could have put diplomatic relations under pressure and jeopardised the government’s plans to try and repair its relationship with China.

The UK is also waiting for approval for its own £100 million plan to redevelop the British embassy in Beijing.

Officials insist that, while China continues to pose a threat to the UK’s national security, experts across the government believe that Britain will remain protected.

The prime minister’s official spokesman told reporters: “National security is the number one priority.

“The Home Office and Foreign Office both provided views during the planning process on potential security issues around the build and confirmed in writing when these were resolved.”

What Are The Security Concerns Around China’s Mega-Embassy?

There are multiple fears surrounding the mega-embassy and the process leading up to its approval.

Was The Process Robust Enough?

The chairman of parliament’s intelligence and security committee, Kevan Jones – a former Labour defence minister – claimed on Tuesday that the government had not gone through a “robust” enough process before granting its approval.

Jones, who sits as Lord Beamish, said: “The process within government was not effectively co-ordinated, nor was it as robust as we would have expected for a matter of such consequence.

“We were surprised both at the lack of clarity as to the role that national security considerations play in planning decisions, and that advice was prepared without some of the key facts at hand.

“Key reports lacked the detail necessary, were dealt with piecemeal, and appeared not to have been kept up to date. We will be writing to the prime minister with our concerns.”

While admitting the government should be able to mitigate national security concerns which may arise along the way, the committee also pointed out that Beijing continues to target Britain “prolifically and aggressively”.

It said it was not “convinced that the government has managed to reconcile internally that China can be both an economic partner and a national security threat”.

What About ‘Secret Rooms’ Within The Building?

China’s redacted plans for the embassy sparked fears “secret rooms” will be installed and used for spying.

However, the government insists it has seen the unredacted plans and are satisfied they will not be used for nefarious purposes.

Starmer’s spokesperson said: “Regarding so-called secret rooms, classified facilities are a standard part of any significant diplomatic presence, including British embassies.

“And the government has seen the plans and we’re content that any risks are being appropriately managed.”

Security minister Dan Jarvis refused to tell the Commons about what grounds the embassy was approved, saying it would “not be appropriate” because of the potential for legal proceedings.

But, Jarvis confirmed Labour has agreed with China that the “publicly accessible forecourt” on the embassy grounds would not have diplomatic immunity.

“Based on all of this and our extensive work on this matter, I am content that any risks are being appropriately managed,” Jarvis aid.

What About Fibre Optic Cables?

The embassy will be near fibre-optic cables which carry sensitive data for City of London companies.

For more than four decades, a nearby tunnel carried cables under the River Thames, while the embassy site itself included a trading floor which was wired directly into the country’s financial infrastructure.

But the UK housing department has rejected claims the site would interfere with the cables, saying national security bodies had not raised concerns over just how close the wires are to the embassy.

How Have Opposition Parties Responded?

Pretty negatively. Liberal Democrat foreign affairs spokesperson Calum Miller called it Starmer’s “biggest mistake yet”.

“The prime minister knows his decision today will amplify China’s surveillance efforts here in the UK and endanger the security of our data – not to speak of the safety of the brave Hong Kongers on British soil,” Miller said.

“It’s categorically wrong that he’s embraced these threats to further his flirtation with China.”

Tory shadow foreign secretary Priti Patel said: “Keir Starmer has sold off our national security to the Chinese Communist Party with his shameful super embassy surrender.”

Reform UK described the move as a “serious threat to national security” and a “desperate attempt by the Labour government to cosy up to the Chinese Communist Party”.

How Has No.10 Responded To The Worries?

MI5 director general Sir Ken McCallum and GCHQ’s director Anne Keast-Butler said it was not “realistic to expect to be able wholly to eliminate each and every potential risk”.

Starmer’s spokesperson said: “National security is our first duty. Intelligence agencies have been involved throughout the process and an extensive range of measures have been developed to manage any risks.”

He added: “It’s of course a normal part of international diplomatic relations for countries to agree to establish embassies in each other’s capitals.

“They are the first line of communication between countries. They offer vital help to their nationals when they need it, and above all, they help us to advance our economic, cultural and defence goals abroad to deliver for, and protect, our citizens at home.

“Those who don’t accept this basic premise are either naïve or recklessly isolationist.

“The prime minister has been crystal clear that China matters for our security, our economy and our climate. And in his Lady Mayor’s speech last year, he said, ‘no transformation today carries greater consequence than the rise of China’.

“The simple fact is the UK needs a China policy that recognises this reality.”

Asked about the risks posed to any Hong Kong pro-democracy activists in the UK, the spokesperson said:  “We have always stood firm on human rights and we will continue to do so. It’s an issue that we frequently raise in engagement with the Chinese.”

What Happens Next?

Local residents have said they are planning to use the next six weeks to seek a judicial review, of the government’s decision, although they have raised only £37,000 out of £145,000 needed to do so.

The treasurer of the local Royal Mint Court Residents’ Association, Mark Nygate, said: “The residents are determined to keep fighting today’s decision.”

He also said those living near the proposed development were particularly worried about “government interference in what is supposed to be an independent process”, although officials say there’s been no political input in the process.

China owns the freehold of residential properties next to the site already, and its occupants fear being evicted.

“We will be looking directly at the 230 flats they want to build for embassy staff and guests; they won’t want us here,” Nygate said.