A decision on whether to approve China's request for a new super-embassy in London has been delayed once more by the administration.
Residential Affairs Secretary Steve Reed had been expected to determine on the proposal by 21 October, but the deadline has been extended to 10 December.
It is the second occasion the authorities has delayed a ruling on the contentious site, whose position has sparked concerns it could create an spying threat.
A ruling had first been expected by 9 September after ministers gained oversight of the operation from Tower Hamlets, the local council, last year.
China bought the property of the planned new embassy, at Royal Mint Court, adjacent to the Tower of London, for ÂŁ255m in 2018. At 20,000 square metres, the suggested development would be the largest embassy in Europe if it goes ahead.
The awaiting ruling on whether to approve the recent embassy was already under close scrutiny because of concerns about the safety consequences of the plan, including the placement, size and layout of the facility.
The property is close to data transmission cables carrying transmissions to and from banking organizations in the City of London. Concerns have been brought up that China representatives could use the location to access the connections and listen in.
More concerns have been raised in the past few weeks about the type of the danger posed by Beijing, following the collapse of the prosecution against two men charged of spying for China.
The Crown Prosecution Service unexpectedly withdrawn accusations against legislative research specialist Christopher Cash, 30, and scholar Christopher Berry, 33, last month. Both men refute the allegations.
The government's first delay was requested by Reed's former secretary Angela Rayner, after she asked China to explain why some rooms within its development papers had been redacted for "security reasons".
Development advisors working for the China consulate had answered that China "does not believe that, as a basic concept, it is essential or fitting to furnish complete interior designs".
Rayner had sent correspondence to organizations involved in the consultation, including China, the Metropolitan Police and a neighborhood group, to allow additional time to reply to the proposals and putting the time limit back to 21 October.
Reed, who took over the residential portfolio following Rayner's resignation last month, has now requested additional time before a final decision needs to be made.
In a document examined by media outlets, the housing department said more time was required due to the "thorough quality" of responses obtained to date.
It added that it was unable to set a new deadline for fresh comments until it obtains outstanding replies from the Diplomatic Service and Domestic Affairs Department.
The suggested development would contain administrative areas, a extensive subterranean section, residences for 200 staff, and a new tunnel to link the Embassy House to a separate building on the embassy grounds.
Beijing's proposal for the embassy was originally denied by Tower Hamlets Council in 2022 over protection and safety issues.
It submitted again an same request to the authority in August 2024, one month after the administration changed.
The Chinese Embassy in the UK has earlier stated the recent development would enhance "reciprocal advantageous partnership" between China and Britain.
In a fresh official communication released accompanying Reed's letter detailing his motivations for the most recent postponement, a Beijing representative said disapprovals to the site were "either unsubstantiated or unreasonable".
The Conservatives said Administration members should reject the request, and accused them of trying to "muffle the warnings about the dangers to national security" posed by the consulate location.
The Liberal Democrats also demanded the proposal to be stopped, urging the administration to "confront China".
International Relations representative Calum Miller said it would be "crazy" for government officials to permit the embassy development to go ahead, after warnings from the head of MI5 on Thursday about the threat of China intelligence gathering.
A ex-top counselor to the previous leader said MI5 and MI6 had warned him China was "attempting to construct a spy centre underneath the embassy," when he was serving in Downing Street.
Commenting during a government program, the consultant said the agencies had told him that authorizing the embassy to be built would be "a highly unwise choice".
In his annual speech, the protection head said "Chinese state actors" presented a state security danger to the UK "each day".
He mentioned that the UK needed to "guard itself strongly" against China, while also being able to "take advantage of the possibilities" from having a relationship with Beijing.
Elara is a financial strategist with over a decade of experience in wealth management and entrepreneurship.
