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The UK is expected to approve a 'mega' Chinese Embassy in London despite objections

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The UK is expected to approve a 'mega' Chinese Embassy in London despite objections
News

News

The UK is expected to approve a 'mega' Chinese Embassy in London despite objections

2026-01-14 19:48 Last Updated At:19:50

LONDON (AP) — Britain’s government is expected to approve a “mega” Chinese Embassy close to London’s financial district after years of controversy and political wrangling over the potential security risks it poses to the U.K.

Lawmakers from across the spectrum have urged planning officials to reject China’s application for the new embassy. Critics fear the proposed new building, on a huge site close to London’s financial district and crucial data cables, will be used as a base for espionage. Others say the supersized embassy — set to be the biggest Chinese Embassy in Europe — will pose a heightened threat of surveillance and intimidation to Chinese dissidents in exile.

The decision was initially slated for October, but it was repeatedly postponed after multiple allegations of Chinese spying and political interference piled pressure on the British government.

British media have reported that the decision to approve the embassy will come this week, ahead of Prime Minister Keir Starmer's expected trip to China. The closely watched visit would be the first made by a British prime minister since 2018.

A final decision on the embassy is expected by Jan. 20, the deadline set by the government.

Here's a look at why the embassy has been the focus of protests and Sino-British tensions for years:

The proposed embassy at Royal Mint Court — the former site of the U.K.’s coin maker, near the Tower of London — will cover about 20,000 square meters (215,278 square feet) and replace several Chinese official buildings across London.

Critics say the new site sits too close to underground fiber optic cables carrying sensitive financial information between London’s two main financial districts.

Conservative Party lawmaker Alicia Kearns said that risks handing over access to data that would give China’s government “a launchpad for economic warfare against our nation.” She cited news reports that the building complex would include 208 secret basement rooms close to the data cables.

Dissidents have also been among hundreds of people who have protested the plans, saying a mega-embassy housing large numbers of officials would further China’s repression of activists abroad.

Lawmakers from the governing Labour Party who oppose the plan say concerns include “the recent track record of Chinese espionage cases, interference activities and issuing of bounties against U.K.-based Hong Kongers.”

The site was bought by China’s government for 225 million pounds ($301 million) in 2018, but plans for the embassy have been delayed since.

Local officials rejected the initial application over concerns that the embassy would attract many large protests, affecting the safety of residents and tourists. China resubmitted its proposals after the Labour government took power last year.

Bronwen Maddox, director of the London think tank Chatham House, said she believed Britain's government should approve the proposed mega-embassy “given that MI5 and MI6 (U.K. intelligence agencies) have said they are not worried about the city cables underneath it."

“I guess that you could see why there is cause for concern, but what I think the government should be much tougher on is what exactly is China going to do with that embassy, never mind the building; what about the people in it? Why does it need so many? What are they going to do?"

China has complained about the seven-year delay in approving the project, saying the U.K. was “constantly complicating and politicizing the matter.”

“The development scheme of the new Chinese Embassy is of high quality and has been highly recognized by local professional bodies,” the Chinese embassy said in a statement in October. “The application complies with diplomatic practice and local regulations and procedures.”

Chinese Foreign Ministry spokesman Lin Jian has warned that if the embassy isn’t approved, “the consequences arising therefrom shall be borne by the U.K. side.”

Recent high-profile cases involving alleged Chinese espionage have raised alarms about the embassy.

In November, the domestic intelligence agency, MI5, issued an alert to lawmakers warning that Chinese agents were making “targeted and widespread” efforts to recruit and cultivate them using LinkedIn or cover companies.

Authorities believe the alleged “headhunters” were trying to gain access to sensitive information about Parliament and Britain’s government.

Beijing has strongly denied the claims, calling them “pure fabrication and malicious slander.”

Earlier, Britain’s government faced questions on whether it had interfered in the trial of two alleged Chinese spies in order to preserve good ties with China.

Former parliamentary researcher Christopher Cash and academic Christopher Berry were charged last year with spying for Beijing. But their trial collapsed at the last minute because the U.K. government refused to brand China a threat to national security, the country’s chief prosecutor said.

Facing criticism that he is not taking a tough enough stance on the security risks, Starmer has stressed that while protecting national security is non-negotiable, Britain needs to keep up diplomatic dialogue and cooperation with the Asian superpower.

“This is not a question of balancing economic and security considerations. We don’t trade off security in one area, for a bit more economic access somewhere else,” he has said.

Last year, Starmer said Chinese President Xi Jinping personally raised the matter during a phone call.

Opposition lawmaker Priti Patel derided Starmer as “Beijing’s useful idiot in Britain.”

“Starmer’s ‘reset’ with Beijing is a naive one-way street, which puts Britain at risk while Beijing gets everything it wants,” she said.

Associated Press writer Danica Kirka contributed to this report.

FILE - Protesters hold umbrellas, placards, and flags as they demonstrate against the proposed building of a new Chinese embassy, and to mark the 11th year of the Umbrella Revolution in Hong Kong, in London, Sunday, Sept. 28, 2025. (AP Photo/Joanna Chan, file)

FILE - Protesters hold umbrellas, placards, and flags as they demonstrate against the proposed building of a new Chinese embassy, and to mark the 11th year of the Umbrella Revolution in Hong Kong, in London, Sunday, Sept. 28, 2025. (AP Photo/Joanna Chan, file)

FILE - Protesters hold umbrellas, placards, and flags as they demonstrate against the proposed building of a new Chinese embassy, and to mark the 11th year of the Umbrella Revolution in Hong Kong, in London, Sunday, Sept. 28, 2025. (AP Photo/Joanna Chan, file)

FILE - Protesters hold umbrellas, placards, and flags as they demonstrate against the proposed building of a new Chinese embassy, and to mark the 11th year of the Umbrella Revolution in Hong Kong, in London, Sunday, Sept. 28, 2025. (AP Photo/Joanna Chan, file)

LONDON--(BUSINESS WIRE)--Jan 14, 2026--

According to Omdia’s latest research, the global smartphone market grew 4% year on year in Q4 2025, supported by seasonal demand and improved inventory discipline, even as rising component costs began to weigh on a few vendors. Growth was concentrated among leading vendors, including Apple and Samsung, across key regions. Apple led the smartphone market in 4Q25 with a 25% market share, delivering a record fourth quarter driven by strong demand for the iPhone 17 series. Apple also ranked as the world’s largest smartphone vendor for the third consecutive year, finishing marginally ahead of Samsung.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260114416098/en/

In 4Q25, Samsung followed in second with 18% share, driven by strong momentum in the sub-$300 segment, particularly for the Galaxy A17 4G and 5G models. Xiaomi retained its third place for both 4Q and full year 2025, despite its share declining to 11% in Q4 amid hurdles to volume in some of its key markets. vivo captured 8% share, delivering another strong quarter predominantly driven by its leadership in India. OPPO re-entered the global top five as it returned to growth in 4Q, marking a positive turnaround ahead of its integration of realme into its business from January 2026.

For the full year 2025, global shipments grew 2% year-on-year to 1.25 billion units, reflecting a stable but uneven recovery year in which a weaker 1H25 was followed by a stronger second half, defined by booming emerging economies and positive reception of flagship launches. However, rising memory costs and shortages have started to impact the market and constrain the broader volume upside in 4Q25. Mounting cost pressures toward year-end point to a stronger focus on pricing discipline, profitability and operational efficiency heading into 2026.

“Apple recorded its highest-ever fourth-quarter shipment volumes in 4Q25,” said Sanyam Chaurasia, Principal Analyst at Omdia. “The performance was driven by solid demand for the iPhone 17 series alongside continued traction from older-generation models during the holiday season. The base iPhone 17 exceeded expectations following storage upgrades at unchanged pricing, while Pro models gained momentum as Apple ramped up production through the quarter. Meanwhile, the iPhone Air acted as a portfolio showcase, with its slim form factor enhancing retail marketing and reinforcing the premium appeal of the Pro lineup.

“DRAM supply tightness has added considerable supply-side pressures to the smartphone industry, and is expected to be a key defining factor in 2026, said Runar Bjørhovde, Senior Analyst at Omdia. “Amid restricted DRAM supply of both LPDDR4 and LPDDR5, the battle to secure supply and limit cost increases is intense amongst all vendors. All vendors are utilizing mitigating tactics, for example, by emphasising long-term partnerships, utilizing scale to secure capacity, and focusing on their supplier base. The situation is particularly critical for vendors with heavier exposure to entry-level smartphones, which are highly price elastic and where memory and storage costs make up a higher share of the bill-of-materials.”

“Rising cost pressures are reshaping how smartphone vendors approach 2026,” added Sanyam Chaurasia, Principal Analyst at Omdia. “Higher semiconductor costs, alongside a slowing refresh cycle, are expected to weigh on shipment momentum. In response, vendors are tightening configurations, aligning launch strategies closer with component availability and using channel-led levers such as services, trade-ins and ecosystem bundling to support higher price points. The push toward greater scale and supply-side leverage is already becoming evident, exemplified by realme moving under OPPO’s umbrella, reflecting early signs of consolidation as vendors seek greater scale to manage rising costs to maintain competitiveness in the decade’s second half.”

ABOUT OMDIA

Omdia, part of Informa TechTarget, Inc. (Nasdaq: TTGT), is a technology research and advisory group. Our deep knowledge of tech markets grounded in real conversations with industry leaders and hundreds of thousands of data points, make our market intelligence our clients’ strategic advantage. From R&D to ROI, we identify the greatest opportunities and move the industry forward.

Worldwide smartphone shipment market share, top vendors, 1Q23 to 4Q25

Worldwide smartphone shipment market share, top vendors, 1Q23 to 4Q25

Global smartphone shipments rose 4% YoY in Q4 2025, supported by holiday demand, while cost pressures constrained growth

Global smartphone shipments rose 4% YoY in Q4 2025, supported by holiday demand, while cost pressures constrained growth

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