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Home » China and the UK are trying to reset relations – here’s how
Economy

China and the UK are trying to reset relations – here’s how

Editor-In-ChiefBy Editor-In-ChiefJanuary 28, 2026No Comments4 Mins Read
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British Prime Minister Keir Starmer addresses a business delegation after arriving in China at a hotel in Beijing, January 28, 2026.

Karl Cote | AFP | Getty Images

Chinese President Xi Jinping told British Prime Minister Keir Starmer on Thursday of his intention to build a long-term strategic partnership with Britain, as the two countries seek to restore bilateral relations after years of tensions.

According to a statement published by Chinese state media, the two countries will expand cooperation in key areas such as education, healthcare, finance, artificial intelligence research, biological sciences and new energy development.

The statement said the Chinese government would also consider allowing visa-free entry for British nationals and called on London to create a fair and non-discriminatory environment for Chinese companies operating in the UK.

According to Reuters, Starmer said in a bilateral meeting with President Xi that the UK aims to build a “more sophisticated” relationship with China.

Prime Minister Starmer’s four-day visit to China will be the first by a British Prime Minister in eight years. This suggests an attempt to mend relations between the two countries, which have long been mistrusted and acrimonious.

Britain has accused China of domestic espionage in the past and sees this as a long-term strategic challenge. Beijing’s crackdown on pro-democracy protests in the former British colony of Hong Kong and the implementation of sweeping national security legislation in 2020 further strained bilateral relations.

Starmer’s visit comes at a time when U.S. President Donald Trump’s foreign policy and tariff threats are unsettling traditional allies, while Beijing has hosted several Western leaders this month, including Canadian Prime Minister Mark Carney, Irish Prime Minister Michael Martin, who is making the first trip by an Irish leader in 14 years, and Finnish Prime Minister Petteri Olpo.

“Unilateralism, protectionism and authoritarian politics are rampant and are seriously impacting the international order,” Xi said, urging economic powers to “take the lead” in enforcing international law. “Otherwise, the world will retreat into a jungle.” This is clear, according to CNBC’s translation of the Chinese statement.

Mr Starmer on Wednesday called on dozens of British business leaders accompanying him to seize opportunities in the world’s second-largest economy.

The UK government said in a statement on Wednesday that it would pursue a “strategic and consistent relationship” with Beijing, with a view to strengthening new investment and trade ties, while remaining alert to potential security threats.

The British government last week approved plans for a vast new Chinese embassy in London, which has been stalled for years due to political and security concerns.

Mr. Starmer’s diplomatic shift appears to mirror that of Canada, which signed a trade deal with China earlier this month following Mr. Carney’s visit, as Ottawa looks to diversify its trade and investment partners amid continued friction with Washington.

British companies in China have faced a worsening business environment for the past six consecutive years, according to the British Chamber of Commerce in China.

The group said in a December report that nearly 60% of more than 300 British companies surveyed said it was now more difficult to do business in the country than a year ago. “The overall business landscape remains complex and often unpredictable,” the report said, citing a slowing economy, regulatory pressures and geopolitical risks.

However, the report said there were no strong signs of a broader move to exit the Chinese market, and while many companies continued to see China as a key market, they appeared to be more cautious about their expansion plans.

Britain’s trade deficit with China rose by more than 18% year on year to £42 billion ($58.1 billion) in the 12 months to June 2025, according to British government data.

—CNBC’s Evelyn Cheng contributed to this report.



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