London Daily

Focus on the big picture.
Saturday, Oct 31, 2026

UK and Australia launch pact against Chinese economic ‘coercion’

UK and Australia launch pact against Chinese economic ‘coercion’

Move will be seen as an attempt to counter pressure placed on companies by Beijing to toe the line.

The U.K. and Australia are teaming up to tackle economic “coercion” by a small number of countries including China.

Top ministers from both governments announced Thursday that their officials will start a new “economic security dialogue” to tackle growing challenges in the Indo-Pacific, keep global supply chains diverse and address the risk of economic “coercion” by hostile nations.

The move is part of the West’s response to pressure applied by Beijing to prominent overseas companies or sectors in a bid to prevent them from making public statements on sensitive issues or to gain their support for China’s policies.

The announcement came at the end of a two-day visit to London by Australia’s Deputy Prime Minister and Defense Minister Richard Marles and its Foreign Minister Penny Wong. The pair met their British counterparts Ben Wallace and James Cleverly — a format known as “Aukmin.”

“It is important that we recognize that, sadly, the rules-based order is under threat like never before, human rights are being threatened by a range of characters around the world and people are testing the sovereignty of nation states in a way that should worry us all,” Wallace told a press conference in Portsmouth, south England.

In a joint statement issued Thursday, the four ministers stressed their “strong opposition to any coercion or destabilizing actions in the South China Sea,” where China is increasing its military presence.

Amid heightened tensions between China and Taiwan, the U.K. and Australian ministers highlighted the importance of “peace and stability” across the Taiwan Strait, a critical waterway for global supply chains, and their shared opposition to “unilateral changes to the status quo.”

Britain and Australia are close defense partners, and members of the three-way AUKUS pact with the U.S. since September 2021 aimed at providing nuclear-powered submarines and other cutting-edge defense equipment to Australia. Canberra is expected to decide whether those subs will be built by the U.S., the U.K. or a combination of both early in the spring.

Marles told the press conference the AUKUS submarine plan was “a huge moment” in Australia’s history.

“This will change Australia’s international personality, it will dramatically build our capability, and with that, our sovereignty,” he said.

The U.K. and Australia will also carry out a comprehensive refresh of their 2013 bilateral Defense and Security Cooperation Treaty.

Two British warships are permanently stationed in the Pacific, “and there will be more of that to come,” Wallace said.


Colonial baggage


Cleverly also responded to calls by Wong for Britain to acknowledge its “uncomfortable” colonial past as it engages in a so-called “tilt” to the Indo-Pacific.

Cleverly said Britain has a duty to show its relationship with former colonies such as Australia is a “partnership of equals.”

“I think it is incumbent upon the U.K., in our dealings with Australia or any other country with which we were once a colonial power, to recognize that we need to demonstrate that this is a modern partnership, a partnership of equals — different but equal, geographically separated but emotionally and historically bound,” Cleverly said.

Wong had evoked her father’s Hakka and Cantonese Chinese background in her Tuesday address, recalling how many people including her own grandmother had worked as “domestic servants for British colonialists.” She warned the U.K. won’t be able to build strong ties with the region if remained “sheltered in narrower versions” of its history.

Cleverly insisted there was “no tension, no awkwardness” in his first face-to-face bilateral meeting with Wong, and stressed that the visit had “reinforced what is a very long-standing, very intimate bilateral relationship which is embedded in so much shared history.”

“You cannot eradicate or erase your history — so you need to be conscious of it,” Cleverly said.

Sophia Gaston, head of foreign policy and U.K. resilience at the Policy Exchange think tank, said Britain still has “much to learn” from Australia’s experience in its own neighborhood.

“The capacity to interrogate our history is a key strength of modern democracies such as ours, and should be embraced frankly and fearlessly,” she said.

“Far from engaging in a project of colonialist nostalgia, as some have interpreted the ‘tilt’, Britain’s recent engagement in the region has shown sensitivity and cultural understanding, with an emphasis on being a constructive and committed partner.”

Newsletter

Related Articles

0:00
0:00
Close
Department for Science, Innovation and Technology Prepares Enhanced Artificial Intelligence Safety and Cyber Defense Frameworks
United Kingdom Government Expands International Sanctions Framework Against Russian Shadow Fleet and Financial Enablers
Institute of Directors Reports Sharp Post-Budget Drop in Business Confidence Despite Long-Term Investment Intention Shifts
Chancellor John Healey Defends Sweeping Fiscal Adjustments and Household Support Packages Following Autumn Budget
Parliamentary Petitions Committee Schedules Major Legislative Debates on Special Educational Needs and Non-Stun Meat Labelling
Regional Devolution and Good Growth Fund Frameworks Reshape Local Government Funding Across English Regions
Loughborough University Economic Analysts Highlight Substantial Uncertainty Surrounding Public Sector Efficiency Savings
British Legal Sector Drives Sixty Billion Pounds in Annual Economic Output While Employing Over Half a Million Professionals
Law Society Welcomes New Better Regulation Executive While Pressing for Long-Term Legal Aid Funding Reform
Metropolitan Police and Security Services Heighten Operations Across London Ahead of Large-Scale Public Demonstrations
Bank of England Economists Scrutinize Corporate Tax Adjustments and Public Sector Borrowing Pressures
Chancellor John Healey Defends Autumn Budget Tax and Spending Allocations Following Intense Parliamentary Scrutiny
Department for Environment, Food and Rural Affairs Implements Strict Water Quality Monitoring Rules Following Severe Rainfall and Flooding
Welsh Government Unveils Comprehensive Regional Housing Strategy to Address Rural Affordability and Homelessness Pressures in Cardiff
Office for National Statistics Reports Slowing Consumer Price Inflation and Steady Retail Performance Across United Kingdom Markets
Northern Ireland First Minister Michelle O'Neill and Deputy First Minister Emma Little-Pengelly Advance Cross-Border Infrastructure Agreement in Belfast
Competition and Markets Authority Launches Formal Investigation Into Artificial Intelligence Partnerships Involving Major Technology Corporations
Scottish First Minister John Swinney Secures Cross-Party Support for Devolved Budget Framework and Renewable Energy Expansion
High Court Rules in Favor of Environmental Campaigners Over Department for Energy Security and Net Zero Licensing Procedures
National Health Service England Announces Major Digital Modernization and Artificial Intelligence Diagnostic Rollout Across Regional Trusts
Bank of England Monetary Policy Committee Signals Cautious Approach to Interest Rate Cuts Amid Persistent Wage Growth and Inflation Pressures
British Prime Minister Keir Starmer and Chancellor Rachel Reeves Outline Strategic Infrastructure Plans to Boost Regional Growth and Private Investment
Water pollution remains high despite £5bn investment
Regional Economic Divergence and Industrial Transformation
Technological Sovereignty and Regulatory Scrutiny
Fiscal Consolidation and Public Service Pressures
Automotive Industry Leadership Warns of Imminent Supply Chain Disruptions Following Recent European Trade Negotiations
High Court Delivers Landmark Ruling Affirming Strict Legal Protections for Corporate Data Privacy Against State Surveillance
Welsh First Minister Eluned Morgan Secures Additional Funding for Regional Transport Infrastructure and Rail Modernization
Scottish First Minister John Swinney Announces Major Green Energy Infrastructure Investment Package for Aberdeen
Department for Work and Pensions Proposes Sweeping Welfare Reforms to Incentivize Long-Term Unemployed Back into Work
Competition and Markets Authority Launches Formal Investigation into Artificial Intelligence Partnerships Involving Major Tech Giants
United Kingdom Foreign Secretary David Lammy Concludes High-Level Strategic Talks in Washington on Middle East Security
National Health Service England Unveils Emergency Winter Resilience Plan to Combat Projected Surge in Emergency Admissions
Bank of England Governor Andrew Bailey Signals Cautious Approach to Interest Rate Cuts Amid Persistent Inflation
British Chancellor Rachel Reeves Finalizes Corporate Tax Overhaul Ahead of Autumn Budget to Fund Public Services
Automotive Manufacturers Urge Government Action as High Energy Costs and Global Supply Chain Disruptions Threaten Production
Metropolitan Police Issue Formal Apology Following Inadvertent Release of Confidential Information During High-Profile Investigation
Scottish Finance Secretary Shona Robison Unveils Devolved Budget Highlighting Housing and Public Service Adjustments
Energy Regulator Office of Gas and Electricity Markets Prepares to Remove Household Gas Standing Charges Following Treasury Mandate
Treasury Confirms Reversal of Planned Cash Individual Savings Account Allowance Reduction Protecting Twenty Thousand Pound Limit
Office for Budget Responsibility Revisions Predict Moderate United Kingdom Economic Growth with Elevated Inflation Pressures
Chancellor John Healey Delivers First Autumn Budget in Parliament Highlighting Temporary Bank Surcharge and Cost-of-Living Support
Met Office Issues Extended Forecast Highlighting Stable High Pressure Weather Patterns Across the United Kingdom
Scottish Finance Secretary Shona Robison Outlines Changes to Tax Thresholds and Residential Property Levies in Edinburgh
Financial Markets and Government Bond Yields Remain Stable Following Muted Reaction to Autumn Budget Measures
Defence Committee Chair Tan Dhesi Criticizes Budget for Delaying Critical Defence Spending Decisions to Next Year
International Monetary Fund Forecasts United Kingdom Economic Growth at One Point Three Percent for Year
Office for Budget Responsibility Assesses Fiscal Headroom Reduced to Fifteen Billion Pounds Following Global Energy Shocks
Chancellor John Healey Delivers First Autumn Budget Introducing Household Energy Support and Bank Tax Hikes
×