Why the US is worried about China's mega embassy in London

Alarm bells are ringing in Washington over China’s proposal to build its largest diplomatic complex near the Tower of London.

The US House of Representatives’ Select Committee on the Chinese Communist Party (CCP), chaired by Republican Congressman John Moolenaar, has expressed “significant security concerns” over the project.

In a statement on X (formerly Twitter), the committee warned, “The People’s Republic of China mega-embassy in the UK raises significant security concerns: from interference and surveillance to risks for sensitive infrastructure like London’s financial services.”

Security concerns at play

The primary fear revolves around espionage. China’s new embassy is planned at the historic Royal Mint Court site, close to the Tower of London and in proximity to key financial districts. Security experts argue that the location offers a strategic advantage for potential intelligence-gathering operations, given its closeness to the heart of the UK’s financial industry, Financial Times reported.

UK security officials, particularly from MI5, have grown increasingly vocal about what they allege are Chinese espionage activities. The proposed embassy, being significantly larger than China’s current facility in Marylebone, could potentially serve as a hub for intelligence operations targeting sensitive infrastructure and economic sectors.

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Local concerns also echo these fears. The Tower Hamlets local authority, which oversees the Royal Mint Court area, initially rejected the project last year, citing security considerations. Although UK Housing Secretary Angela Rayner later took over the planning decision, security concerns remain at the forefront of the debate.

US interests in Diego Garcia

Washington’s apprehensions over China’s embassy project coincide with another issue: the future of the US-UK military base on Diego Garcia in the Chagos Archipelago.

Diego Garcia is a critical military hub for the US, serving as a transit point for nuclear submarines and strategic bombers, FT reported.

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Any increased Chinese presence or influence could pose intelligence risks to this installation.

UK’s diplomatic tightrope

Chinese President Xi Jinping raised the issue of the new embassy directly with UK Prime Minister Sir Keir Starmer last year.

More recently, Chinese Foreign Minister Wang Yi discussed the embassy plans with British Foreign Secretary David Lammy in London, alongside talks about the UK’s own ambitions to build a new embassy in Beijing.

Despite security objections, some in the British government have supported the Chinese embassy project. Lammy and UK Home Secretary Yvette Cooper, in January, hinted at backing for the proposal, citing the importance of diplomatic presences. This move came after UK Chancellor Rachel Reeves visited China to boost economic ties– the first such visit by a British chancellor since 2017.