Following years of tense relations, China and the U.K. are aiming to cultivate a lasting strategic alliance after a crucial dialogue between Chinese President Xi Jinping and British Prime Minister Keir Starmer.
Starmer is embarking on a 4-day journey to China, marking the first visit by a British leader in eight years — indicating a move to restore ties between the nations after extended periods of mistrust and conflict.
The U.K. has frequently accused China of espionage on its soil, categorizing it as a persistent strategic challenge. Financial Times disclosed on Tuesday that British authorities are planning to enhance oversight of Chinese operations due to worries about national security threats.
Beijing’s measures against democratic demonstrations in Hong Kong, previously a British territory, along with the enactment of a broad national security law in 2020 have further complicated bilateral relations, while British enterprises in China have pointed out the difficulties in the business environment there.
In December, the British government took action to restrict two tech companies located in China for allegedly executing cyberattacks that it claimed jeopardized U.K. security and welfare.
In this context, Thursday’s developments suggest a favorable turn in relations.
The two nations announced plans to deepen collaboration in significant fields including education, healthcare, finance, artificial intelligence research, biological sciences, and the development of new energy, as reported by Chinese state media on Thursday.
Beijing is also considering granting visa-free access to British citizens, the statement indicated, while urging London to create a just and non-discriminatory environment for Chinese businesses in the U.K.
Starmer conveyed to Xi at the start of their discussion that it is “essential that we foster a more nuanced relationship” that enables both parties to identify avenues for further collaboration and conversation, as per Reuters.
London will sustain high-level communications with Beijing and strengthen trade and investment relationships, according to the Chinese summary.
After the summit with Xi, Starmer told reporters that the meeting was “positive” and yielded “fruitful results,” emphasizing that the relationship is in a “good, robust position,” as reported by Reuters.
A Shift Towards China?
Starmer’s visit occurs at a moment when U.S. President Donald Trump’s foreign policy and tariff threats have unsettled traditional partners, while Beijing hosted various Western leaders just this month, including Canadian Prime Minister Mark Carney, Ireland’s Prime Minister Michael Martin — the first visit by an Irish leader in 14 years — and Finnish Prime Minister Petteri Orpo.
Xi informed Starmer that “unilateralism, protectionism, and power politics have run rampant, significantly affecting the global order.” Xi also encouraged leading economic powers to “take the initiative” in enforcing international laws, “otherwise, they will regress to a lawless world.” This is according to a translation provided by CNBC of the Chinese statement.
Starmer’s diplomatic repositioning seems to reflect Canada’s actions, which finalized a trade agreement with China earlier this month following Carney’s visit, as Ottawa seeks to diversify its trade partnerships amid ongoing issues with Washington.
On Wednesday, Starmer urged numerous British business leaders accompanying him to capitalize on opportunities in the world’s second-largest economy.
The U.K. government announced in its statement on Wednesday that it would aim for a “strategic and steady relationship” with Beijing, looking to enhance new investment and trading relationships while remaining alert to potential security threats.
Last week, the U.K. government sanctioned plans for a new sprawling Chinese Embassy in London, after the proposal had been delayed for years due to political and security apprehensions.
U.K. companies operating in China have faced an increasingly challenging business landscape for the past six consecutive years, as stated by the British Chamber of Commerce in China.
Almost 60% of the over 300 British firms surveyed indicated that conducting business in China was more difficult than a year earlier, according to a report issued in December. “The overall business climate remains intricate and frequently unpredictable,” it noted, citing economic slowdowns, regulatory pressures, and geopolitical uncertainties.
Nonetheless, there are no significant indications of a broad withdrawal from the Chinese market, according to the report, with many companies still viewing China as a crucial market, though they seem to be more cautious regarding expansion efforts.
The U.K.’s trade deficit with China surged by over 18% year-over-year to 42 billion pounds ($58.1 billion) for the 12 months ending June 2025, as per U.K. government data.
— Report by Evelyn Cheng for CNBC.
