Opponents have warned of a potential threat to the UK's national security given the site's proximity to London’s two primary financial districts.
The UK approved plans for China to build a massive new embassy in central London on Tuesday, seeking to boost relations with Beijing despite widespread opposition from lawmakers over potential security risks.
Critics have long warned that the proposed embassy — which is set to be China's largest in Europe — could be used as a base for espionage and increase the risk of surveillance and intimidation of Chinese dissidents in exile.
Plans for the embassy have been plagued by objections and protests since 2018, when China's government bought the site at Royal Mint Court, near the Tower of London, for £225 million (€259 million).
The UK's Local Government Secretary Steve Reed formally approved plans for the building after a series of delays and legal challenges.
The embassy will cover about 20,000 square metres and replace several Chinese official buildings across London.
"All material considerations were taken into account when making this decision," the British government said in a statement. "The decision is now final unless it is successfully challenged in court."
British Prime Minister Keir Starmer's government had repeatedly postponed its decision in recent months after multiple cases of alleged Chinese spying and political interference underlined alarms about the proposed embassy.
Opponents say the huge site sits too close to underground fibre optic cables carrying sensitive financial information between London’s two main financial districts.
Dissidents have been among those who have protested the plans, saying a embassy housing large numbers of officials would further China's repression of activists abroad.
Starmer's visit to China
Kemi Badenoch, the leader of the opposition Conservative Party, joined hundreds of protesters who chanted "no China mega embassy" at the site on Sunday.
"We do not want a country that spies on our MPs (lawmakers) having this super-embassy right here," she said.
"We know that we have to stand up to the abuses of China. And what worries me is that we have a government right now that seems to be scared of China," Badenoch added.
However, the UK's security services gave the greenlight to the embassy development.
The government said that "no bodies with responsibility for national security ... have raised concerns or objected to the proposal on the basis of the proximity of the cables or other underground infrastructure".
China has complained about the seven-year delay in approving the project, saying that the UK was "constantly complicating and politicising the matter."
Chinese Foreign Ministry spokesman Lin Jian had warned that if the embassy wasn't approved, that "the consequences arising therefrom shall be borne by the UK side."
Starmer has stressed that while protecting national security is non-negotiable, the UK needs to keep up diplomatic dialogue and cooperation with the Asian superpower.
The approval is widely expected to pave the way for a long-anticipated trip by Starmer to China and an expansion of the UK's embassy in Beijing. The closely watched visit would be the first made by a British leader since 2018.