Introduction to UK-China Relations
Britain’s Prime Minister Keir Starmer addresses a business delegation following his arrival to China, at a hotel in Beijing on January 28, 2026.
China is willing to develop a long-term strategic partnership with the U.K., Chinese President Xi Jinping told British Prime Minister Keir Starmer Thursday, as the two nations look to revive their bilateral relationship after years of strain.
Background and Context
Xi said he was “confident that Starmer’s visit will be a success, leading to new prospects for the bilateral relations and cooperation,” according to a statement released by Chinese state media.
The U.K. is looking to build “more sophisticated” ties with China, Starmer said in a bilateral meeting with Xi, according to Reuters.
Starmer is on a 4-day visit to China, the first trip by a British prime minister in eight years — signaling an attempt at resetting relations between the two countries after years of distrust and acrimony.
Historical Tensions and Recent Developments
The U.K. in the past has accused China of conducting espionage in the country, and labeled it as a long-term strategic challenge.
Beijing’s crackdowns on democratic protests in Hong Kong, a former British colony, and imposition of a sweeping national security legislature in 2020 further strained bilateral ties.
Starmer’s trip comes at a time when U.S. President Donald Trump’s foreign policy and tariff threats have unsettled traditional allies, while Beijing has hosted several 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.
Economic Cooperation and Business Environment
On Wednesday, Starmer called on dozens of British business leaders traveling with him to seize opportunities in the world’s second largest economy.
The U.K. government said in a statement that it would pursue a “strategic and consistent relationship” with Beijing, seeking to bolster new investment and trade relations while remaining vigilant about potential security threats.
Last week, the U.K. government approved plans to open a new sprawling Chinese Embassy in London, after the proposal had stalled for years over political and security concerns.
Trade and Investment
Starmer’s diplomatic shift appears to mirror that of Canada which signed a trade agreement with China earlier this month following a visit by Carney, as Ottawa appears to diversify trade and investment partners amid persistent frictions with Washington.
U.K. businesses in China have been confronted with a deteriorating business environment for the past six consecutive years, according to the British Chamber of Commerce in China.
Nearly 60% of the more than 300 British firms surveyed said doing business in the country was harder than it was a year ago, the body said in a report in December.
Conclusion and Future Prospects
The U.K.’s trade deficit with China ballooned by over 18% year on year to 42 billion pounds ($58.1 billion) in the 12 months ending June 2025, according to the U.K. government data.
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Smart Tip for Readers
When evaluating international trade relationships and their potential impact on businesses, it’s essential to consider multiple sources and stay up-to-date with the latest developments to make informed decisions. By doing so, readers can better understand the complexities of global trade and its effects on local economies.
