The UK finance minister went on his official China tour during the time of the government bond crisis. The tour during such controversy is marred with controversy over the probable effect it can leave on the financial stability of the UK and the way its diplomacy can be affected.
The Chinese visit by the finance minister is coming at a very critical time for the UK economy as the country's bond market is under threat. The visit aims at injecting economic relations, seeking available investments, and getting help in stabilizing the finances of the UK.
The UK financial markets have been strongly affected by the current bond crisis, defined by increased rates and increased investor fear. The pressure increases for the government to react to the fears, and the diplomatic involvement of the finance minister in China would help to attract sorely needed investment and rev up investor confidence.
Talks between the finance minister and Chinese authorities are to be centered on broadening the bilateral relationship as well as considering potential trade and investment partnerships. The UK's economic growth strategy can be delineated to a great extent based on the success or failure of such talks.
The recent UK bond crisis has been the epicenter of this Chinese tour taken by the finance minister, that is, unifying economic bonds around the world and procuring monetary support. The fate of the economy in the UK could well be gauged on the basis of the success of this tour diplomatic.
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