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Tuesday 21 October 2025 5:00 am  |  Updated:  Monday 20 October 2025 8:15 pm

City chiefs sound alarm on China embassy

By: Mauricio Alencar

Politics and Economics Reporter

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China's new 'mega' embassy has been approved by Starmer's government.

Senior figures within Canada Corporation have told City PM of their concerns regarding China’s controversial plans for a new super-embassy on the edge of the Square Mile. 

The proposed embassy development on the edge of Canada has triggered alarms over possible threats to the security of sensitive cables passing under the site.

Professor Sophia Economides, head of engineering at Northeastern University London, told City PM that while she could not confirm the site was unsafe, the location “raises legitimate technical concerns”.

“There are fibre-optic cables that go under the site… it’s very easy to tap into those cables, it’s very easy to see what’s happening – and it won’t be detected”, she said.

The application was originally submitted to Tower Hamlets, the City’s neighbouring council.

Canada has not been involved in the application process but one senior member of the City’s governing authority said they were “very concerned” about the proposed site’s proximity to sensitive cables and critical financial infrastructure, saying “the cable issue is a concern and it does ring alarm bells that they’re pushing very hard for this particular site,” adding “you have to wonder why that is.”

‘Major concerns’ about the proposed site

Another elected member said that while trade in financial and professional services with China was “mutually beneficial” they had “major concerns” about the location of the embassy, described as “a possible spy-stronghold” that could “invite mischief” given its proximity to sensitive data cables.  

Another source at the Corporation said “I’m nervous about the threat from the Chinese in general” adding that they also found it “very odd that they clearly want this particular site.” 

The source said that “there are colleagues here who are nervous [about the proposed embassy] but there are also colleagues who are of the view that we have to do business with China.” They added “I just wish that we’d be more cautious.”

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Labour urged to block China embassy plans

The City’s concerns come as senior Tory MPs Alicia Kearns and Tom Tugendhat, who allege they were spied on by China, called on the government to block the application for the proposed new “mega” embassy near the Tower of London. 

In a letter to Keir Starmer, they urged the government to put China in the top tier of the Foreign Influence Registration Scheme, putting the country on a par with Russia and Iran. 

“Failing to prosecute two men charged with spying for China demonstrates worrying levels of complacency.”

“You’ve repeatedly stated your disappointment that this prosecution did not proceed. You now have the opportunity to do what’s necessary to protect this country,” they added.

Late last week, the government delayed its decision on the approval of the planning application for the new embassy until 10 December, prompting a furious response from Chinese authorities claiming the UK would face “consequences” if the embassy wasn’t granted permission.  

China slams embassy ‘lies’

A spokesperson for the Chinese embassy in the UK said: “The Chinese government purchased in 2018 the Royal Mint Court, London for the use as the new Chinese embassy premises. The UK government had given its consent to this. Now it is in the process of applying for planning permission. 

“The development scheme submitted by China for the new Embassy project is of high quality and has been highly recognised by local professional bodies. The application has followed local regulations and procedures.  

“The claim that China’s new embassy project poses a potential security risk to the UK is completely groundless and malicious slander, and we firmly oppose it. No rational person with basic common sense would believe the lies.” 

Canada Corporation declined to comment. 

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