UK Green-Lights Chinese Embassy Despite Espionage Warnings
Tom Hayward | 27 June 2025
Royal Mint Court, the proposed location of the new Chinese embassy
Summary
The Planning Inspectorate for England has recommended approval of China’s plans for a new embassy in Central London.
UK intelligence services have warned that the site at Royal Mint Court poses an espionage risk given its proximity to critical communications cables between the City of London and Canary Wharf.
China’s embassy plans come amid concern over Chinese espionage activities and its campaign of surveillance and intimidation against dissidents in the UK.
In June 2025, the Planning Inspectorate for England recommended approval of a Chinese proposal to redevelop Royal Mint Court, a 700,000 sq ft site in central London adjacent to critical infrastructure and financial centres. Beijing purchased the site in 2018 but its embassy plans were blocked by the previous British administrations after national security warnings from the intelligence services. The proposed development is 24 times the size of the current Chinese embassy in Marylebone.
The embassy’s approval comes amid the United Kingdom (UK) government’s recent efforts to improve diplomatic and economic ties with China. Chancellor Rachel Reeves views Chinese investment as crucial for boosting economic growth and visited Beijing in January 2025. Foreign Secretary David Lammy and Home Secretary Yvette Cooper have expressed further support for the planning application, following reports that the Chinese President Xi Jinping reportedly pressured Prime Minister Keir Starmer in November 2024 for the project’s approval.
UK intelligence agencies warned in a 2019 report that the site’s proximity to the City of London and Canary Wharf poses a serious national security risk. The site is above sensitive fibre-optic cables connecting the financial hubs, raising the risk of fibre-cable tapping via physical access to the cables. It is also in proximity to 3 data centres and a telecommunications exchange. The new embassy could enable the interception of communications and provide access to some of the highly sensitive economic data flowing through the area. A larger embassy would also give Beijing scope to increase its espionage activities in the UK. Embassies are commonly used by many countries, including the UK, for espionage purposes and Sir Ken McCallum, head of MI5, has warned of the “epic scale” of Chinese surveillance in the UK. In April 2025, the Mail reported that China has sought to eavesdrop on political and government figures by bugging public places in London, including St James’ Park and Whitehall. A parliamentary researcher was also charged in 2024 under the Official Secrets Act for allegedly providing information to Beijing. Increased Chinese activity in the UK could further strain UK intelligence assets, which are already “stretched” by both state-level and terrorism threats.
A larger embassy could also expand Beijing’s ability to monitor and intimidate Chinese nationals living in the UK. A 2024 report by Amnesty International highlighted China’s campaign of harassment and surveillance against Chinese and Hong Kong students in the UK. Beijing has previously used unofficial police stations in the UK to monitor the dissidents and the Chinese diaspora. There have also been a number of incidents involving Chinese consular staff in recent years. In 2022, for instance, Consul General Zheng Xiyuan physically assaulted a Hong Kong protester inside the Manchester Chinese Consulate.
The embassy plans could bring implications for the UK’s relationships with allies. The United States (US) has expressed concern over the embassy plans, with the White House expressing deep concern “about providing China with potential access to the sensitive communications of one of our closest allies.” At present, the UK and US share large quantities of intelligence but fears of compromise could threaten this relationship, especially at a time when China is the US’s “top counterintelligence priority”. Other Five Eyes Alliance nations may also reassess their bilateral sharing frameworks with the UK and reduce their reliance on the UK as a reliable intelligence-sharing partner.
Steve Cadman/Wikimedia Commons, CC BY-SA 2.0
Forecast
Short-term (Now - 3 months)
It is highly likely that Deputy Prime Minister Angela Rayner will formally approve the embassy plans, given external diplomatic pressure from Beijing and internal pressure from the Treasury and Foreign, Commonwealth and Development Office (FCDO).
It is a realistic possibility that the US could respond by undermining the recent UK-US trade deal.
Medium-term (3-12 months)
MI5 will very likely face an increased operational burden in countering Chinese espionage activity as Beijing expands its diplomatic footprint in London.
It is likely that the UK’s intelligence relationships with the Five Eyes, and in particular the US, will deteriorate given the construction of the embassy.
Long-term (>1 year)
Royal Mint Court will almost certainly function as a major hub for Chinese influence activities in Western Europe.
China will very likely increase its surveillance and intimidation of Chinese and Hong Kong dissidents in the UK.
