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    Home > Finance > How China's plan to build a new embassy in London became a seven-year diplomatic struggle
    Finance
    How China's plan to build a new embassy in London became a seven-year diplomatic struggle

    Published by Global Banking and Finance Review

    Posted on January 20, 2026

    5 min read

    Last updated: January 20, 2026

    How China's plan to build a new embassy in London became a seven-year diplomatic struggle - Finance news and analysis from Global Banking & Finance Review
    Tags:London Stock Exchangeinternational capitalforeign currencyfinancial stabilityInvestment opportunities

    Quick Summary

    China's plan for a new London embassy faced a seven-year delay due to planning disputes and diplomatic tensions, with the UK government ultimately intervening.

    Table of Contents

    • The Long Journey of China's Embassy Plans
    • Initial Approval and Planning Delays
    • Local Council's Rejection and Diplomatic Tensions
    • Government Intervention and Final Approval

    China's New Embassy in London: A Seven-Year Diplomatic Journey

    The Long Journey of China's Embassy Plans

    By Andrew MacAskill

    Initial Approval and Planning Delays

    LONDON, Jan 20 (Reuters) - Britain has approved construction of a new Chinese embassy in London after stalling the decision for seven years over planning disputes and a diplomatic standoff that has complicated efforts to repair damaged relations between the two nations.

    Local Council's Rejection and Diplomatic Tensions

    Here is a timeline of why the planning application has taken so long to resolve:

    Government Intervention and Final Approval

    May 2018 - China announced plans to build a new embassy in London on the former site of the Royal Mint - the maker of British coins - after purchasing land on the site for about 250 million pounds ($337 million).

    The new embassy would replace China's main diplomatic premises in Portland Place in the Marylebone district of central London. This has been the site of China's embassy since 1877 when it was opened as the country's first permanent overseas diplomatic mission.

    Chinese diplomats say they need a new embassy because the current space is too small and they use several buildings across London to host the work of officials who work on science, defence, culture and visa services.

    When the Chinese government bought the land, Britain's then Conservative government gave its approval. The then foreign minister, Boris Johnson, welcomed what he said at the time was China's "largest overseas diplomatic investment".China's then ambassador, Liu Xiaoming, expressed hopes that the deal would "write a new chapter for a China-UK golden era".

    June 2021 - China submitted its plans to redevelop the site to the Tower Hamlets council in east London. Under British law, local governments handle most planning decisions.

    The plan set out how China planned to build an embassy with a footprint of about 55,000 square metres (600,000 square feet) which would be China's biggest mission in Europe.

    The new embassy would include enough space for offices, housing for diplomats and staff, as well as commerce, consular services, educational and cultural centres.

    December 2022 - The problems began when Tower Hamlets council unexpectedly refused to grant permission for the project saying it would impact on the lives of residents.

    While unelected planning officers in Tower Hamlets council accepted the plans, local elected councillors overruled them at a meeting.

    The councillors sided with local residents who said they could be swept up in protests at the site and complained about China's treatment of Uyghurs, a sensitive issue for residents in an area of east London that has a large Muslim population.

    August 2023 - China paused plans to build a new embassy when it missed a deadline to appeal against the local council's decision.

    China would only resubmit its application if it received a promise from the British government to intervene, sources told Reuters at the time.

    Around this time, British officials said London's plans to rebuild its embassy in Beijing could be impacted in a tit-for-tat response unless China was allowed to relocate its embassy.

    July 2024 - Two weeks after British Prime Minister Keir Starmer's Labour Party won one of the largest parliamentary majorities in recent history, China resubmitted its planning application to the local government.

    August 2024 - Chinese President Xi Jinping raised his concerns about the failure to approve the embassy decision with Starmer in their first call.

    October 2024 - The British government took control of the stalled planning decision under powers that allow it to do so if an application is controversial, or nationally significant.

    This triggered a planning inquiry with the final decision then made by the government.

    November 2024 - Starmer told Xi in televised comments at the G20 summit in Brazil that his government would make the final decision on whether to approve the embassy after Xi raised the matter with him.

    January 2025 - After the planning inquiry requested evidence, the then British foreign and interior ministers indicated their support for the plans.

    August 2025 - The government first delayed its decision after saying parts of China's planning application were blacked out.

    Over the following months, it pushed back the ruling twice more, citing slow responses from the British interior and foreign ministries — delays that came as ministers faced criticism over the collapse of a trial of men accused of spying for Beijing.

    January 2026 - The British government approved the embassy plan, saying national security was its "first duty" and intelligence agencies had been involved throughout the process.

    "An extensive range of measures have been developed to manage any risks," a government spokesperson said.

    The housing ministry said in a separate statement that the decision was final unless it was successfully challenged in court.

    ($1 = 0.7417 pounds)

    (Reporting by Andrew MacAskill, editing by Elizabeth Piper and William James)

    Key Takeaways

    • •China plans to build a new embassy in London.
    • •The project faced a seven-year delay due to planning and diplomatic issues.
    • •Local council initially rejected the embassy plans.
    • •The British government intervened to make the final decision.
    • •Diplomatic tensions affected UK-China relations.

    Frequently Asked Questions about How China's plan to build a new embassy in London became a seven-year diplomatic struggle

    1What is a planning application?

    A planning application is a formal request submitted to local authorities for permission to develop land or property. It includes details about the proposed project and must comply with local regulations.

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