UK Seeks Warmer Ties With China, But Relations Appear Lukewarm
From 27 to 30 January 2026, UK PM Keir Starmer was on a state visit to China in response to the invitation from Chinese Premier Li Qiang. During his visit, he had bilateral meetings with Chinese President XI Jinping and Premier LI Qiang. Then, Starmer attended business events in both Beijing and Shanghai. For this visit, Starmer was accompanied by 60 captains of the British industry, as well as the UK media.
The deals announced were far and few between as the UK-China ties is trying to stage a comeback from the Ice Age back to the Golden Age. Back in the heyday during the good old Cameron days, China was designated to upgrade British Rail with high-speed technology and even build Hinkley nuclear power plant.
President Xi expressed regret that the bilateral ties experienced ‘twists and turns’, while PM Starmer affirmed that the UK cannot afford not to engage with the world’s 2nd largest economy. Starmer appeared to be specially cautious by calibrating his reset with China , in order not to irritate Trump.
The bilateral trade between the UK and China stood at GDP 103 billion, down from a high of GDP 115 billion in 2022. The announced reduction of duty from 10% to 5% on Scotch whisky is estimated to add GBP 250 million to UK exports over the next five years.
Nevertheless, Starmer did not come back completely empty-handed. The largest deal is perhaps the USD 15 billion of Foreign Direct Investment (#FDI) by AstraZeneca in China over five years till 2030. The investments will mainly target the research and development of gene therapy and drug manufacturing.
In addition, the UK-China Business Council signed an MoU with the City of Suzhou in Jiangsu Province to set up an innovation center. Other than that, British tourists can travel to China for 30 days without needing a visa. Just before his travel to China, Starmer’s Labour government finally approved the construction of the new Chinese embassy in London.
US President Trump warned that it is ‘very dangerous’ for countries to do business with China and that China is not the solution, in his opinion. However, countries are still lining up to derisk from the US, after Trump implemented his aggressive #tariffs tactics to force deals. Trump, himself, is scheduled to visit China in April 2026, and does not wish his position of strength chipped away by other countries’ deals with China.