Whitehall officials told City executives on Monday that plans for the first UK-China Economic and Financial Dialogue since 2019 had been postponed, Sky News learns.
Holding the talks in the coming weeks would have represented an opportunity for Mr Zahawi to cement his leadership credentials on the international stage.
The government's decision to exclude Huawei Technologies from Britain's 5G network, last year's tensions in the South China Sea and growing hostility towards Chinese investment in the UK from Conservative MPs such as Tom Tugendhat, another leadership contender, were, however, responsible for more recent frosty relations between Westminster and Beijing.
Mr Li told the British company bosses that China would continue to open its markets to give them greater access to the country's fast-growing middle classes.
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