UK and China: New Chapter in Economic Relations Following Starmer's Visit

Fri Feb 06 2026 20:01:41 GMT+0200 (Eastern European Standard Time)

Sir Keir Starmer's recent trip to China marks a pivotal moment in UK-China relations, as both nations seek to strengthen trade ties amidst domestic economic pressures.

Sir Keir Starmer's visit to China is seen as a significant step in warming relations between the UK and China, aimed at boosting trade and investment. The trip led to key agreements, including AstraZeneca's $15bn investment in China and halved tariffs on Scotch whisky. Despite unresolved challenges in trade relations, both countries express optimism for future collaboration.

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 characterized their relationship. Both leaders face economic pressures at home and are looking for new opportunities for trade and investment.

For Sir Keir, the first UK prime minister to visit China since Theresa May in 2018, the trip highlighted the strength of British firms in finance, pharmaceuticals, healthcare, clean energy, and car manufacturing. Meanwhile, President Xi Jinping aimed to demonstrate that China can be a reliable partner for Western economies amidst US President Donald Trump's ongoing tensions in global trade.

Although no sweeping free trade deal was reached during the visit, it marked a cautious but tangible reset of UK–China economic ties. Agreements on visas, services, healthcare, green technology, and finance may enhance access for British firms to Chinese markets and foster increased Chinese investment in the UK.

The biggest commercial announcement came from AstraZeneca, which pledged a $15bn (£11bn) investment in China over the next four years to expand its research and medicine manufacturing capabilities. In the energy sector, British firm Octopus Energy entered the Chinese market, indicating further collaboration in renewable energy.

China further agreed to halve tariffs on Scotch whisky, a deal projected to generate £250m for the UK economy over the next five years. Visa-free travel for British citizens visiting China for up to 30 days and agreements on disrupting migrant-smuggling networks also highlight the multi-faceted benefits of the revived relationship.

While the visit has been described as a significant moment for economic ties, challenges remain, including ongoing concerns from foreign businesses about operating in China and the balance that the UK must navigate in its relations with both Beijing and Washington. Sir Keir’s visit reflects the necessity for the UK to cultivate a competitive edge while enhancing mutual trust with China.