Lee Jae-myung: Climate Tech City 'COP in Action'
UK-China Tensions Rise Over Proposed Mega-Embassy in London
On October 28, 2025, UK Prime Minister Keir Starmer reaffirmed his commitment not to bow to Chinese pressure regarding the approval of a mega-embassy construction in London. This underscores the complex situation facing the British government, which must balance maintaining economic ties with China and addressing national security concerns. In 2018, China acquired the 'Royal Mint Court' site, the former location of the London Mint, for £255 million (approximately ₩460 billion), announcing plans to build the largest embassy in Europe. However, approval for the construction plan has been delayed due to concerns about economic security, as the site is located near fiber optic networks connecting London's financial institutions. The British government is carefully reviewing these security issues and plans to make a final decision on the Chinese embassy construction plan by December 2025. This decision is expected to have a significant impact on bilateral relations, as well as Britain's economic interests and security strategies. Given the sensitivity of the 'Royal Mint Court' site, the UK government faces the difficult task of balancing China's demands with its own security interests.
US Pressure and Chinese Rebuttal
The United States is also deeply involved in this issue and is increasing pressure on the UK. In June 2025, the US strongly demanded that the UK reject China's mega-embassy construction plan during trade negotiations. On April 2, 2025, US President Donald Trump announced reciprocal tariff measures against major trading partners, including South Korea, under the pretext of 'resolving discrimination against US companies.' This US pressure is further complicating the British government's decision, and the UK finds itself in a difficult position of maintaining a balance between the US and China while maximizing its national interests. On October 29, 2025, Chinese Foreign Ministry spokesperson Lin Jian urged the UK to fulfill its obligations and keep its promises immediately, putting pressure on the British government. China has expressed strong dissatisfaction with the delay in the embassy construction plan and is urging the British government to grant prompt approval. This hard-line stance from the Chinese Foreign Ministry is making it difficult for the British government to make a decision easily. Ultimately, the UK is at a point where it must make a careful diplomatic decision between US security concerns and Chinese economic pressure.
The UK's Dilemma and Crossroads of Choice
The British government is caught in a dilemma where it cannot neglect national security while considering its economic relationship with China. China is an important trading partner for the UK, and a deterioration in relations with China could negatively impact the British economy. However, at the same time, the potential security threats that could arise if the Chinese embassy is built on the 'Royal Mint Court' site cannot be overlooked due to the site's sensitivity. In this situation, UK Prime Minister Keir Starmer is emphasizing the principle of not yielding to Chinese pressure and prioritizing national interests. The British government is expected to make a careful decision, taking into account various aspects. The final decision will be the result of considering Britain's security, economy, and diplomatic standing, and it will be an important turning point in future UK-China relations. Depending on the choice the UK makes, it is likely to have a significant impact on the UK's role and status in the international community. In particular, maintaining a pragmatic diplomatic relationship while upholding the values of a liberal democracy will be an important task for the UK.
Domestic Economic Situation and Real Estate Policy
Meanwhile, as South Korean President Lee Jae-myung is promoting the construction of a climate tech city domestically, the government announced real estate measures on October 15 and designated all 25 districts of Seoul as areas completely prohibited from gap speculation. This is interpreted as a measure showing the government's strong will to stabilize the real estate market and suppress speculative forces. The gap speculation ban is expected to contribute to preventing overheating of the real estate market and protecting actual demanders, but some criticize that it goes against the principles of a market economy. The government is accepting these criticisms while maintaining its position that it is a necessary measure to stabilize the real estate market. As the 2025 Asia-Pacific Economic Cooperation (APEC) summit was held in Gyeongju, the government is focusing on strengthening cooperation with the international community and enhancing South Korea's economic standing. The APEC summit is an example showing that South Korea is playing an important role in the international community, and the government is striving to maximize South Korea's economic interests and promote international cooperation through this. These efforts are expected to have a positive impact on South Korea's economic growth and development.
Trade Relations with the US and Reciprocal Tariff Measures
US President Donald Trump's announcement of reciprocal tariff measures against major trading partners, including South Korea, on April 2, 2025, under the pretext of 'resolving discrimination against US companies' is acting as a new variable in US-Korea trade relations. This US reciprocal tariff measure could negatively impact South Korean companies' exports to the US and raise concerns that it could deepen trade conflicts between the two countries. The government is working to resolve these issues through trade negotiations with the US and protect the interests of South Korean companies. In addition, the government is preparing countermeasures against the US reciprocal tariff measures and promoting various policies to strengthen South Korea's export competitiveness. These efforts are expected to contribute to the stability and development of US-Korea trade relations and will be an important foundation for the continuous growth of the South Korean economy. The government is expected to prepare for the strengthening of US protectionism and focus on strengthening the multilateral trade system.
