Just as it wouldn't be right to only to have an economic dialogue with China, equally you shouldn't restrict your dialogue solely to issues around, say, human rights. You can raise all those issues, and that is what reflects a mature discussion. So I don't think essentially we have to choose between being partners in China's economic development and being proud defenders of British values.

Everyone in our society has had to make a contribution towards dealing with the debts.

I get a lot of letters from people.

You know the illusion of the cheap money is over and now Britain has to go out there and graft and earn its way and create wealth and prosperity in a very competitive world.

The positive news is that the British economy is continuing to grow and is creating jobs. And it is positive news too that at a time of real international instability we are a safe haven in the storm.

I think essentially if you look at British public debate around the issues of our interconnectedness with the global economy you do not find a ready audience, of any large scale, for pulling up the shutters.

At the moment we are hard-wired into the European markets - 50% of our exports go to Europe - and that has not been good for the UK. So I'm not saying "make Britain entirely dependent on China". I'm saying "let's diversify a bit". When I became chancellor, China was our ninth largest trading partner. This is the world's second biggest economy. China was doing more business with Belgium than it was with Britain.