Liz Truss, the UK Foreign Minister and the leading contender in the Conservative Party’s leadership race, is likely to officially declare China as an ‘acute threat’, The Times reports, citing allies of Truss.
Key takeaways
She will reshape foreign policy if she becomes prime minister
Will reopen the integrated review, published last year, which set out British priorities in diplomacy and defence over the next decade.
China was described as a “systemic competitor” but the review argued that the UK should deepen its trading relationship with Beijing.
China would be elevated to a similar status as Russia, which is defined in the review as an “acute threat”.
Market reaction
Amidst risk-aversion, GBP/USD is extending losses below 1.1700, the lowest level since March 2020. The pound could be hurt further by the above comments.
The spot is losing 0.48% on the day to trade at 1.1688, as of writing.
