Finance
UK's Starmer says China poses security threats, but urges deeper business ties
Published by Global Banking and Finance Review
Posted on December 2, 2025
3 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 2, 2025
3 min readLast updated: January 20, 2026
UK's Starmer warns of China's security threats but urges deeper business ties, balancing economic and security interests.
By Andrew MacAskill
LONDON, Dec 2 (Reuters) - Prime Minister Keir Starmer has warned that China poses "national security threats" to Britain, but defended his government's decision to step up engagement with the country, saying closer business ties are in the national interest.
Starmer's Labour government has made improved relations with China one of its foreign policy priorities, but relations between the two countries have been strained by British accusations of spying by Beijing.
In one of his clearest attempts to explain his approach to China, Starmer said in a speech to business leaders on Monday evening that Britain's relationship with China had for too long "blown hot and cold".
STARMER CALLS FOR 'SERIOUS APPROACH' TO CHINA
Britain has zig-zagged in its approach towards China in the past decade, moving from saying it wanted to be China's greatest supporter in Europe in the so-called "golden era" of relations to then being one of its fiercest critics.
"It's time for a serious approach, to reject the simplistic binary choice, neither golden age nor ice age, and recognise the plain fact that you can work and trade with a country while still protecting yourself," Starmer said.
Starmer's decision to publicly say China posed "national security threats" comes after prosecutors said a trial of men accused of spying for Beijing collapsed in September because the government declined to describe the country in similar terms.
In a statement on Tuesday, the Chinese embassy in London criticised what it called Starmer's "groundless accusations" about the threat posed by Beijing.
Starmer accused Britain's previous Conservative government of overseeing a deteriorating relationship with China, which he called a "dereliction of duty".
He said that since 2018 French President Emmanuel Macron had visited China twice and German leaders had visited China four times. But the last British leader to visit China was former Prime Minister Theresa May in 2018.
STARMER TO VISIT CHINA NEXT YEAR, SOURCES SAY
Starmer is preparing to visit China next year, according to sources, following trips by at least four cabinet ministers since Labour was elected last year.
Rejecting the idea that the relationship was defined by balancing economic and security considerations, Starmer said his government would not trade security in one area for more economic access.
"Protecting our security is non-negotiable - our first duty," he said. "But by taking tough steps to keep us secure, we enable ourselves to cooperate in other areas."
But Starmer said in areas where there is no significant security risk, he would encourage businesses to try to improve their business ties with China.
"In areas like financial and professional services, creative industries, pharmaceuticals, luxury goods and more - great British success stories – the export opportunities are huge and we will back you to seize them," he said.
(Reporting by Andrew MacAskillEditing by Frances Kerry)
National security refers to the protection of a nation's borders, interests, and citizens from external threats, including military attacks, espionage, and terrorism.
Foreign investment occurs when individuals or companies invest capital in businesses or assets located in another country, often to gain financial returns.
A security threat is any potential danger that could harm a nation's safety, including espionage, cyber attacks, and military aggression.
International capital refers to financial assets that are invested across national borders, including investments in stocks, bonds, and real estate.
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