Chinese President Xi Jinping (R) and British Prime Minister Keir Starmer shake hands before a meeting at the Great Hall of the People in Beijing, January 29, 2026.
Karl Cote | AFP | Getty Images
Chinese companies have pledged hundreds of millions of pounds worth of investment into the UK and formed new partnerships with British peers, as Prime Minister Keir Starmer’s visit to China boosts business activity and investment flows between the two countries.
During a four-day visit to China last week, Starmer met with Chinese President Xi Jinping and secured a deal that would see exports worth 2.2 billion pounds ($3 billion) and market access worth 2.3 billion pounds, as well as hundreds of millions of dollars worth of new investment from Chinese companies, a statement from Downing Street said.
Following the high-profile visit, the two leaders extolled the benefits of cooperation, with Xi saying the relationship was “mutually beneficial”. Starmer, who brought a large delegation of banking, pharmaceutical and car executives to China, also said the country was vital to Britain’s national interests.
Although no sweeping free trade agreement has been reached, companies in several industries have announced major investments and alliances aimed at deepening bilateral ties, including toy maker Popmart, which makes Lovey dolls, e-commerce group JD.com, and battery giant CATL.
The deals come as the British leader seeks to rebuild relations with China, despite warnings from US President Donald Trump that doing business with China could be “very dangerous” for the UK.
The diplomatic reset also came after European Union leaders repeatedly expressed concern about China’s export surplus flooding European markets.
Gabriel Wildeau, Teneo’s managing director, said China’s overcapacity was “less of a serious concern” for the UK because of the growing role of services in the UK economy and less political focus on the competitive threat posed by Chinese exports.
popmart, automobile, biotechnology, energy
Popmart announced last Friday that it plans to open a regional headquarters in London and aim to open 27 new stores across Europe over the next year, including seven in the UK. The project is expected to create more than 150 jobs in the UK.
Shoppers and tourists walk on Oxford Street in London, England, on July 7, 2025.
Mike Kemp | In Photography | Getty Images
Similarly, Chinese car manufacturer Chery Commercial Vehicles plans to establish a regional headquarters in Liverpool, according to a social media post from the city council. Few details of the deal have been disclosed, but Chery Automobile is widely expected to partner with Britain’s Jaguar Land Rover in its UK operations.
Tianjin-headquartered life sciences group Asimchem plans to significantly expand its UK operations, adding 150 jobs over the next five years in advanced research and development and next-generation manufacturing, the UK government has announced.
In another sign that Starmer was able to leverage the new relationship to economic benefit, Chinese energy storage maker HiTHIUM has pledged to invest £200m in the UK and create 300 jobs in the country. The British government has announced that Chinese companies will provide technology to improve the reliability of the electricity grid.
The transaction continued AstraZeneca’s The company announced last week that it will invest $15 billion in China to expand local research and development capabilities and grow its workforce by more than 3,000 to more than 20,000 by 2030, according to a statement from the company.
Additionally, British asset manager Schroders announced on Friday that it has signed a memorandum of understanding with Contemporary Amperex Technology, known as CATL, to develop battery energy storage systems in Europe, also supporting the battery giant’s international expansion.
Expanding market access
As part of the UK-China deal, the Chinese government has pledged to give British companies greater access to the world’s second-largest consumer market and improve the business environment, which has deteriorated in recent years.
Chinese e-commerce conglomerate JD.com said it would help British brands sell to hundreds of millions of consumers on its platform and provide logistics services to support online orders. The tech giant plans to launch its online retail platform Joybuy, which is currently in beta testing, in the UK in March.
The partnership with Jingdong Corporation comes as British companies report that China’s business environment has worsened for the sixth year in a row, due to persistent deflationary pressures, widespread weakness in consumption and increased domestic competition, according to a December survey by the British Chambers of Commerce.
China’s domestic consumption shows “no signs of returning to the vibrant spending days of the pre-pandemic era”, hampering sales of luxury goods and luxury brands, the agency said.
However, opportunities are emerging for experience-oriented spending, and this trend could benefit UK businesses in industries such as sport, entertainment and wellness, the trade group added.
Businesses appear to remain optimistic about the Chinese market, with around one-third of respondents planning to increase investment in the country, particularly for business expansion, forming new partnerships and localization experiments, the survey showed.
Mr Starmer’s visit also fulfilled a series of other promises from British brands, including Welsh manufacturer Caltech and British bicycle maker Brompton, to increase exports to China.
In the life sciences sector, British biopharmaceutical company Birmingham Biotech has announced plans to expand its operations in China, where it expects to generate around £20 million in sales over the next few years.
Octopus Energy Group, the UK’s biggest energy supplier, plans to make its first foray into the world’s biggest clean energy market by forming a new joint venture with China’s PCG Power to trade renewable energy.
—CNBC’s Evelyn Cheng contributed to this report.
