Philip Hammond has said Britain will have a "constructive" relationship with the US under Donald Trump, but gave warnings that he did not agree with the President-elect's plans to slap tariffs on foreign goods.
The chancellor, speaking to the BBC this morning, said that he hopes talks will still be helpful, but indicated he would be unsupportive of some of his economic plans as they could damage the economy.
"I'm sure we will have a very constructive dialogue … with the new American administration," Hammond told the BBC ahead of talks in London with Ma Kai, China's vice premier.
The Republican has given mixed messages on how he would do business with the UK. He has previously dismissed trade deals and open markets, but has also said that the UK would be at the front of the queue for a trade deal after Brexit.
Read more: Government seeking Chinese trade deal
Trump has said he would apply a 45 per cent tariff to Chinese imports, but Hammond indicated he would not support his protectionist policy.
Hammond said today:
We believe that free trade and open markets are good for prosperity, good for the protection of jobs in this economy. But we do also recognise the concerns that there are around dumping and unfair practices, and it’s about getting the right balance in the global trading system so that we can have the benefits of open markets, while being properly and appropriately protected from unfair practices.
He added: "President Trump has just been elected by the American people. He will want to consult with his advisers, talk to officials and I'm sure we will have a very constructive dialogue, as we do with the Chinese, with the new American administration."
The government has announced new Chinese investment in the UK as part of the latest round of talks between the two countries.
Chinese contractor CITIC Construction is set to invest £320m in the first part of a £1.7bn London Royal Albert Docks project headed up by the developer ABP. The UK is in turn expected to invest £40m in the Asian Infrastructure Investment Bank in Beijing.
The government said it will also showcase 13 projects totaling £5bn to investors later today.