Sir Keir Starmer's visit to China this week is the clearest sign yet the two countries are seeking to end the diplomatic 'ice age' that has defined their relationship. Both leaders face economic pressures at home and are seeking new opportunities for trade and investment. For Sir Keir, the first UK prime minister to visit China since Theresa May in 2018, the trip was a chance to highlight the strength of British firms in finance, pharmaceuticals, healthcare, clean energy, and car manufacturing. President Xi Jinping, on the other hand, aimed to demonstrate that China can be a reliable partner for Western economies amid continued global trade tensions, particularly with the U.S. Although no sweeping free trade deal was reached, the visit marked a cautious yet tangible reset of UK–China economic ties.
Agreements on visas, services, healthcare, green technology, and finance may lead to better access for British firms to Chinese markets, alongside greater Chinese investment in the UK. The biggest commercial announcement came from AstraZeneca, which pledged to invest $15 billion (£11 billion) in China over the next four years, making it their largest investment in the country to date. In the energy sector, British firm Octopus Energy announced its entry into China through a partnership aimed at enhancing efficiency in power systems.
China also agreed to halve tariffs on Scotch whisky, potentially generating £250 million for the British economy over the next five years, which is seen as a significant win for UK's export sector. Furthermore, visa-free travel for British citizens visiting China for up to 30 days has been agreed upon, bolstering tourism and business exchanges. Despite these advancements, challenges such as complex regulations and the need for transparency in business operations remain critical concerns for foreign businesses. Starmer’s visit aims to revitalize UK-China relations strategically, underlining the importance of maintaining diplomatic balances amidst global economic shifts.
Agreements on visas, services, healthcare, green technology, and finance may lead to better access for British firms to Chinese markets, alongside greater Chinese investment in the UK. The biggest commercial announcement came from AstraZeneca, which pledged to invest $15 billion (£11 billion) in China over the next four years, making it their largest investment in the country to date. In the energy sector, British firm Octopus Energy announced its entry into China through a partnership aimed at enhancing efficiency in power systems.
China also agreed to halve tariffs on Scotch whisky, potentially generating £250 million for the British economy over the next five years, which is seen as a significant win for UK's export sector. Furthermore, visa-free travel for British citizens visiting China for up to 30 days has been agreed upon, bolstering tourism and business exchanges. Despite these advancements, challenges such as complex regulations and the need for transparency in business operations remain critical concerns for foreign businesses. Starmer’s visit aims to revitalize UK-China relations strategically, underlining the importance of maintaining diplomatic balances amidst global economic shifts.
