HSBC has hired a former senior adviser to Sir Tony Blair to help navigate the West’s growing diplomatic rift with China.

David Quarrey, who has held a variety of UK government roles, is set to become the bank’s new head of public affairs amid rising geopolitical tensions.

The top diplomat is currently an ambassador for the UK at Nato and has enjoyed a star-studded civil service career.

He served as private secretary to Sir Tony between 2004 and 2006 during the latter years of his premiership.

The 58-year-old also held senior roles in the Foreign Office, including as head of the UK team in the United Nations Security Council. In 2015 he was appointed ambassador to Israel, serving until 2019.

The appointment marks a coup for HSBC, one of the world’s biggest banks operating in over 60 countries across the globe.

The lender is often forced to strike a balance between its two largest markets, China and the UK, amid rising tensions between the East and the West.

It has faced criticism in the past for putting relations with China, which accounts for its largest market by revenue, ahead of its Western interests, and was roundly condemned for supporting a draconian human rights crackdown in Hong Kong.

The bank also has a significant presence in the US, with the prospects of a second Donald Trump presidency and renewed US-China tensions adding further risks for HSBC.

Mr Quarrey will replace Sir Sherard Cowper-Coles, who stepped down from the bank after making controversial comments about the UK’s relationship with China.