A growing espionage dispute has delayed Britain’s decision on a massive new Chinese embassy in London, deepening tensions with Beijing. The 215 000-square-foot complex, planned near the city’s financial district, has drawn criticism from lawmakers who warn it could become a hub for surveillance.

The delay follows the United Kingdom’s government’s refusal to share evidence in a case accusing two men of spying for China. Beijing called the delay: “unacceptable” and warned London would: “bear all consequences” if approval were denied. The controversy comes as Britain seeks to balance economic ties with China against mounting concerns over political interference and security risks.