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Britain has postponed for the third time its decision on whether to approve China’s plan to build Europe’s largest embassy in London, a project that has faced delays for three years. The embassy is proposed on the site of a historic two-century-old building near the Tower of London, purchased by China in 2018. The delays are attributed to opposition from local residents, lawmakers, and Hong Kong pro-democracy activists, who cite both security concerns and the strategic significance of the site, which lies above critical fibre-optic cables.

The planning process has become politically sensitive, with previous local council objections and direct intervention by Chinese President Xi Jinping, who asked UK Prime Minister Keir Starmer to facilitate approval.

Why It Matters

The delayed decision touches on both national security and diplomatic relations. Some UK and US officials worry that the embassy could be used for intelligence-gathering purposes. At the same time, the delay risks straining UK-China relations, with Beijing warning that continued deferrals undermine mutual trust and cooperation. The decision also comes amid broader scrutiny of China’s influence in the UK, following the collapse of a trial involving two British men accused of spying for China, raising questions about the government’s handling of national security threats.

Key stakeholders include the UK government, particularly the ministries of housing, interior, and foreign affairs, which are reviewing the security implications of the project. The Chinese government and its embassy in London are directly invested in obtaining planning approval. Local residents and Hong Kong pro-democracy campaigners are vocal opponents, while opposition politicians are pressuring the government to block the embassy due to strategic security concerns. International observers, including the US, are also monitoring the situation due to broader implications for Western relations with China.

What’s Next

The UK Department of Housing has now set January 10, 2026, as the new deadline to rule on the embassy project. The decision will hinge on the security assessments provided by relevant ministries. Depending on the outcome, the ruling could either defuse or further inflame diplomatic tensions with China, and set a precedent for how the UK balances national security against economic and diplomatic interests with Beijing. Continued delays could prompt stronger criticism from both domestic and international actors concerned about espionage and strategic vulnerabilities.

With information from Reuters.

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