A massive new Chinese embassy described as a "hub of interference" by critics will be built in the centre of London after the UK government approved plans for the complex.
The diplomatic outpost will be the largest in Europe and will involve converting the heritage-listed Royal Mint Court building near the iconic Tower of London.
Planning documents suggest the site will cover some 55,000 square metres, almost 10 times the size of Beijing's current embassy in London and bigger than the US's.
Several British MPs and security analysts have expressed concerns about the facility, arguing that it would be a base for espionage and increased surveillance of Chinese dissidents living in exile.
However UK Local Government Secretary Steve Reed formally signed off on the plans on Tuesday, UK time, after nearly eight years marred by protests and legal challenges.
The decision also comes on the eve of UK Prime Minister Sir Keir Starmer's visit to Beijing this month, the first by a British leader since 2018.
Mr Starmer has sought to improve Britain's relationship with Beijing since taking office and has stressed that while protecting national security is non-negotiable, the UK needs to keep up diplomatic dialogue and cooperation with the Asian superpower.
UK Security Minister Dan Jarvis told the House of Commons that the decision balanced national security and diplomatic needs with China.
"While some would stick their heads in the sand and ignore the obvious need to engage, this government is engaging with China confidently and pragmatically," Mr Jarvis said.
"This is not a question of balancing economic and security considerations. We don't trade off security for economic access."
He added that China posed threats to UK security, including through "cyber attacks, foreign interference and espionage targeting our democratic institutions, the transnational repression of Hong Kongers and of course, China's support for Russia's illegal invasion of Ukraine."
"But following detailed consideration of all possible risks around this new embassy by expert officials across government, I am assured that the UK's national security is protected," he said.
The opposition Conservative Party described the decision as a "disgraceful act of cowardice" from a government "utterly devoid of backbone".
Conservative Party leader, Kemi Badenoch, joined protesters outside the Royal Mint Court on Saturday to voice her opposition.
Labour MP Sarah Campion, the chair of the UK's international development select committee, had warned her government colleagues that the new embassy posed multiple security risks.
"Multiple government agencies and government departments have raised concerns about this mega-embassy," Ms Campion said.
"Every security briefing I've had identifies China as a hostile state to the UK. I am in no doubt this mega-embassy should not be allowed to go ahead."
Tuesday's approval was deemed final unless it was successfully challenged in court.
Mark Nygate, the treasurer of the Royal Mint Court Residents Association, told a press conference: "We have to study the decision but we think there are a number of grounds for review which we will develop."
The Chinese embassy in London said in a one-line statement that it noted the government's decision.
'A hub of Chinese interference'
Adding to security concerns are reports that Beijing's newest diplomatic outpost will contain 200 rooms underground, one of which would be situated next to underground communications cables.
The vast network of subterranean rooms had been redacted in public planning documents but were uncovered by journalists at British newspaper, The Daily Telegraph.
The fibreoptic cables transmit financial data between London's financial hubs at Canary Wharf and The Square Mile.
The executive director of the Inter-Parliamentary Alliance on China, Luke de Pulford, told the ABC that Australian financial institutions could be exposed to interference.
"I would hope the United Kingdom had been honest with Australia about this cabling infrastructure, any country has financial institutions in canary wharf is likely to be using that cabling or is at least exposed to the risk of Chinese interference," Mr de Pulford said.
Australia's Department of Foreign Affairs has been contacted for comment.
Dan Jarvis told the UK parliament on Tuesday that the government had seen the unredacted plans for the site.
He said China and the UK had agreed that "the publicly accessible forecourt on the embassy grounds will not have diplomatic immunity, managing the risk to the public."
"Based on all of this and our extensive work on this matter, I am content that any risks are being appropriately managed," he added.
The UK 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 been trying to press ahead with building the embassy for several years.
Beijing purchased the disused Royal Mint Court building and the surrounding land from developers in 2018.
It's understood Beijing paid more than £252 million ($500 million) for the property and UK government sources have told the ABC the Chinese foreign office is prepared to spend at least $1.5 billion on its renovation.
"This is a huge status symbol victory for China, it means hundreds more Chinese state employees in the middle of London. Unfortunately we know from Chinese mission activity around the world that when you have more Chinese state employees, regrettably, you have more Chinese interference," he said.
"If you want to call it a nest of spies, fine — I would describe it as a hub of Chinese interference."
Mr de Pulford believes the government has been "coerced" into approving the proposals, telling the ABC that Beijing has been threatening to ban the British foreign office from making much needed renovations to its crumbling embassy in Beijing.
"The UK embassy in Beijing has its water and power switched off periodically and the Chinese have been saying we (the UK) can't renovate that until we get the greenlight in London, so this is real diplomatic coercion," he said.
British intelligence service MI5 warned MPs last year that Chinese spies were trying to recruit them through platforms like LinkedIn.
That came after a case collapsed against two British nationals who had connections to UK parliament and allegedy spied for China.
Despite the concerns raised by opponents, all UK security agencies gave the embassy proposal the all-clear.
China has long rejected allegations of spying on Western countries.
