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China and the UK are attempting to reset their relationship — here’s how

by Anniek Bao
January 29, 2026
in Finance
Reading Time: 3 mins read
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Britain’s Prime Minister Keir Starmer addresses a enterprise delegation following his arrival to China, at a lodge in Beijing on January 28, 2026.

Carl Courtroom | Afp | Getty Photos

China is keen to develop a long-term strategic partnership with the U.Okay., Chinese language President Xi Jinping instructed British Prime Minister Keir Starmer Thursday, as the 2 nations look to revive their bilateral relationship after years of pressure.

The 2 sides will develop cooperation in key areas together with training, healthcare, finance and synthetic intelligence analysis, organic sciences and new vitality improvement, in accordance with a press release launched by Chinese language state media.

Beijing may also contemplate opening visa-free entry for British nationals, the assertion mentioned, whereas urging London to create a good and non-discriminatory surroundings for Chinese language companies working within the U.Okay.

U.Okay. is seeking to construct “extra refined” ties with China, Starmer mentioned in a bilateral assembly with Xi, in accordance with Reuters.

Starmer is on a 4-day go to to China, the primary journey by a British prime minister in eight years — signaling an try at resetting relations between the 2 international locations after years of mistrust and acrimony.

The U.Okay. up to now has accused China of conducting espionage within the nation, and labeled it as a long-term strategic problem. Beijing’s crackdowns on democratic protests in Hong Kong, a former British colony, and imposition of a sweeping nationwide safety legislature in 2020 additional strained bilateral ties.

Starmer’s journey comes at a time when U.S. President Donald Trump’s overseas coverage and tariff threats have unsettled conventional allies, whereas Beijing has hosted a number of Western leaders simply this month together with Canadian Prime Minister Mark Carney, Eire’s Prime Minister Michael Martin — the first go to by an Irish chief in 14 years — and Finnish Prime Minister Petteri Orpo.

Xi known as out that “unilateralism, protectionism and energy politics have been rampant, severely impacting the worldwide order,” urging main financial powers to “take the lead” in implementing worldwide legal guidelines, “in any other case they’ll regress to a jungle-like world.” That is in accordance with a CNBC translation of the Chinese language assertion.

On Wednesday, Starmer known as on dozens of British enterprise leaders touring with him to grab alternatives on the planet’s second largest economic system.

The U.Okay. authorities mentioned in its assertion Wednesday that it could pursue a “strategic and constant relationship” with Beijing, in search of to bolster new funding and commerce relations whereas remaining vigilant about potential safety threats.

Final week, the U.Okay. authorities authorized plans to open a brand new sprawling Chinese language Embassy in London, after the proposal had stalled for years over political and safety considerations.

Starmer’s diplomatic shift seems to reflect that of Canada which signed a commerce settlement with China earlier this month following a go to by Carney, as Ottawa seems to diversify commerce and funding companions amid persistent frictions with Washington.

U.Okay. companies in China have been confronted with a deteriorating enterprise surroundings for the previous six consecutive years, in accordance with the British Chamber of Commerce in China.

Practically 60% of the greater than 300 British companies surveyed mentioned doing enterprise within the nation was tougher than it was a yr in the past, the physique mentioned in a report in December. “Total enterprise panorama stays advanced and sometimes unpredictable,” it mentioned, citing financial slowdown, regulatory pressures and geopolitical dangers.

However there haven’t been robust indicators of a broad shift towards withdrawing from the Chinese language market, the report mentioned, with many companies persevering with to view China as a key market, though they gave the impression to be extra cautious with enlargement plans.

The U.Okay.’s commerce deficit with China ballooned by over 18% yr on yr to 42 billion kilos ($58.1 billion) within the 12 months ending June 2025, in accordance with the U.Okay. authorities information.

— CNBC’s Evelyn Cheng contributed to this report.



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