Sir Keir Starmer’s China Visit Signals Thaw in ‘Ice Age’ of UK–China Relations
Sir Keir Starmer’s visit to China this week is the clearest sign yet that 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 looking for new trade and investment opportunities.
For Sir Keir, the first UK prime minister to visit China since Theresa May in 2018, the trip was a chance to showcase British strengths in finance, pharmaceuticals, healthcare, clean energy, and automotive manufacturing.
President Xi Jinping, meanwhile, aimed to demonstrate that China can be a reliable partner for Western economies, amid US President Donald Trump’s ongoing disruption of the global trading system.
Although no sweeping free trade deal was announced, the visit marked a cautious but tangible reset of UK–China economic ties. Agreements on visas, services, healthcare, green technology, and finance, along with revived dialogue, could improve market access for British firms in China and attract greater Chinese investment in the UK.
Key Deals Agreed
- AstraZeneca pledged to invest $15bn (£11bn) in China over the next four years, expanding research and manufacturing—the company’s largest investment in the country to date.
- Octopus Energy entered the Chinese market through a partnership with PCG Power to develop a digital platform for electricity trading, supporting China’s renewable energy goals. CEO Greg Jackson said the collaboration offers a huge opportunity for Britain to use affordable solar, wind, and battery technology to lower electricity costs.
- Scotch Whisky tariffs were halved, potentially generating £250m for the UK economy over five years. Sir Keir called it proof that pragmatic international engagement brings tangible benefits.
- Visa-free travel for UK citizens visiting China for up to 30 days for holidays and business was agreed, putting the UK on par with countries like France, Germany, Australia, and Japan.
- Both sides committed to cooperating against migrant-smuggling networks, a priority for the UK government.
Benefits for China
Renewed ties with a major European economy signal that China remains a dependable Western partner despite US trade tensions. The reset secures access for Chinese exporters of high-value goods like electric vehicles and renewable energy, while encouraging Chinese investment in British services, finance, and green technology.
Chinese state media framed the visit as a step toward turning the “potential of China–UK cooperation into real achievements that benefit both peoples and the world.”
Chris Fitzgerald of Octopus Energy highlighted that partnerships with China could bring affordable, clean energy to British customers while sharing UK technology expertise with Chinese consumers.
Remaining Challenges
Foreign businesses still face hurdles in China, including complex regulations, red tape, and a lack of transparency. These factors create uncertainties that require careful navigation. Fitzgerald noted that choosing the right local partners is key to seizing opportunities in the world’s largest renewable energy market.
For Sir Keir, the visit comes amid domestic pressure to deliver economic growth. While improving relations with China is a priority, it demands delicate diplomacy.
US President Trump has warned of potential tariff repercussions for countries deepening ties with China, including Canada and the UK. Sir Keir, however, emphasized that Britain does not have to choose between Washington and Beijing, framing the reset as a pragmatic move to support domestic growth while managing geopolitical risks.
At the UK–China Business Forum in Beijing, Sir Keir described his meetings with Xi as “very warm” and highlighted visa-free travel and whisky tariff agreements as “symbolic of what we’re doing with the relationship” and “important access” for British firms.
Sir Keir’s visit comes amid similar trips by leaders from France, Canada, and Finland, who are seeking to hedge against an unpredictable United States. These countries are closely watching the deals the UK and others strike with China, aiming to remain competitive in attracting Chinese investment and accessing the world’s second-largest economy. (Agencies)
