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Britain has approved China’s plan to build its largest embassy in Europe on the Royal Mint Court site near the Tower of London, ending a three year planning deadlock. The decision comes despite warnings from some British and U.S. politicians that the complex could boost Chinese espionage activities in the UK.

The government took over the planning process after the local council rejected Beijing’s application in 2022, and an inquiry was held last year to review the project. Officials said all material considerations were assessed and that the approval is now final unless overturned in court.

The move is expected to smooth the way for Prime Minister Keir Starmer’s planned visit to China, the first by a British leader since 2018. Chinese President Xi Jinping had previously asked Starmer to intervene, and both sides viewed the embassy decision as key to resetting relations.

Security agencies have raised concerns that a much larger Chinese diplomatic presence could mean more intelligence officers operating under cover. Critics also fear the location could allow eavesdropping on fibre optic cables used by financial firms in the nearby City of London.

China’s embassy in London has dismissed the espionage claims as unfounded. MI5 chief Ken McCallum has said the service has long experience dealing with foreign embassies and that any security risks can be managed, even as the agency continues to warn about Chinese influence efforts.

The new mission will cover about 55,000 square metres, almost 10 times the size of China’s current London embassy and larger than its compound in Washington. Beijing bought the Royal Mint Court site in 2018 for 255 million pounds after receiving assurances it could build there.

Local residents and Hong Kong pro democracy activists had campaigned against the project and are now considering a legal challenge, including a possible judicial review. They argue that the giant compound will change the character of the area and raise long term security and human rights concerns.

The approval underlines Britain’s attempt to balance security worries with economic interests. After years of tension, Starmer has signalled that deeper business ties with China are in the national interest while still calling Beijing a strategic challenge.

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