Britain's government approved plans on January 20 for China to construct its largest embassy in Europe at the former Royal Mint Court site in east London, near the Tower of London and Tower Bridge. Housing Secretary Steve Reed, responsible for planning decisions, granted permission following recommendations from the Planning Inspectorate, overriding rejections by the local Tower Hamlets Council.

The new embassy will span 20,000 square metres and house more than 200 staff, consolidating seven existing Chinese diplomatic properties across London. China purchased the 5.1-hectare site for £255 million in 2018, with initial plans submitted in 2019 and designed by architect David Chipperfield. Tower Hamlets rejected the application twice—in 2022 and later—citing public safety and design concerns, prompting the government to intervene.

Opposition centered on national security risks, including potential espionage and interference with nearby fibre optic cables carrying sensitive financial data into the City of London. Lawmakers from the Conservative Party, Liberal Democrats, Reform UK, and some Labour MPs criticized the decision, with Conservatives calling it a "disgraceful act of cowardice." Hong Kong pro-democracy activists and U.S. politicians also voiced fears of harassment of dissidents and spying operations. Over 500 local objections highlighted impacts on residents and heritage.

Government officials emphasized consultations with intelligence agencies MI5 and GCHQ, whose heads stated in a joint letter that while risks could not be fully eliminated, proportionate mitigations were in place. These include perimeter monitoring to protect cables and a steering group for managing protests. Security Minister Dan Jarvis assured Parliament that national security remained the top priority. The approval aligns with efforts to reset UK-China ties strained since 2018, potentially paving the way for Prime Minister Keir Starmer's visit to Beijing.

China's embassy welcomed the decision, stating it complied with laws and diplomatic norms. Construction must begin within three years, subject to conditions.

Residents at Royal Mint Court have launched a crowdfunding campaign for a judicial review, arguing procedural flaws, with lawyers estimating costs at £145,000. The London Assembly expressed opposition, and legal action remains possible as of early March, potentially delaying the project.