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    Home > Finance > Britain and China hail reset in ties as Starmer seeks 'sophisticated' relationship
    Finance

    Britain and China hail reset in ties as Starmer seeks 'sophisticated' relationship

    Published by Global Banking & Finance Review®

    Posted on January 29, 2026

    5 min read

    Last updated: January 29, 2026

    Britain and China hail reset in ties as Starmer seeks 'sophisticated' relationship - Finance news and analysis from Global Banking & Finance Review
    Tags:PresidentUK economyinternational capitalbusiness investment

    Quick Summary

    UK's Starmer meets China's Xi to enhance economic ties, addressing business opportunities and human rights concerns.

    Table of Contents

    • Strengthening UK-China Relations
    • Economic Cooperation and Investments
    • Security and Human Rights Discussions
    • Cultural Exchanges and Engagements

    UK and China Embrace New Era of Cooperation Under Starmer's Leadership

    Strengthening UK-China Relations

    By Andrew MacAskill

    Economic Cooperation and Investments

    BEIJING, Jan 29 (Reuters) - Britain and China hailed a reset in relations on Thursday, after Prime Minister Keir Starmer and President Xi Jinping pledged greater cooperation on trade, investment and technology to the mutual benefit of both countries.

    Security and Human Rights Discussions

    With Western leaders reeling from the unpredictability of U.S. President Donald Trump, Starmer became just the latest to head to China where he called for a "more sophisticated relationship" with greater market access, lower tariffs and investment deals.

    Cultural Exchanges and Engagements

    In the first visit by a British leader in eight years, Starmer agreed 30 days' visa-free access for Britons, discussed lower Chinese tariffs on whisky, and welcomed a $15 billion investment by the UK's AstraZeneca into China.

    Starmer spent around three hours with Xi at a formal summit and a lunch, during which the pair discussed trade and security, the war in Ukraine, and soccer and Shakespeare.

    STARMER SEEKING ECONOMIC GROWTH

    The British premier held up a plan by AstraZeneca to pioneer new medicines by investing heavily in its Chinese operations as proof of the benefits that could flow to both countries.

    But he also said the closer ties would enable Britain to engage in "frank dialogue" when there was disagreement.

    Starmer, whose centre-left Labour government has struggled to deliver the economic growth it promised, has made improving relations with the world's second-largest economy a priority.

    That has drawn fierce criticism from some British and U.S. politicians who accuse China of waging industrial levels of espionage while also abusing human rights.

    "China is a vital player on the global stage, and it's vital that we build a more sophisticated relationship where we can identify opportunities to collaborate, but of course, also allow a meaningful dialogue on areas where we disagree," Starmer told Xi at the start of their meeting.

    Xi said China was ready to develop a long-term partnership with Britain following "twists and turns" in the relationship that did not serve the interests of either country.

    "We can deliver a result that can withstand the test of history," Xi told Starmer, flanked by his top ministers, at their summit at the Great Hall of the People.

    Starmer later told reporters he had a "respectful discussion" with Xi about the case of Jimmy Lai, the former Hong Kong media tycoon and British citizen who was convicted in December of national security crimes.

    WESTERN ALLIES RATTLED BY TRUMP'S UNPREDICTABILITY

    Starmer's visit comes amid Trump's on-off threats of trade tariffs and pledges to grab control of Greenland, an autonomous territory of Denmark, which have rattled long-standing U.S. allies such as Britain.

    He follows in the footsteps of Canadian Prime Minister Mark Carney, who this month signed an economic deal with Beijing to tear down trade barriers, drawing tariff threats from Trump.

    German Chancellor Friedrich Merz is expected to travel to China soon and Trump himself has said he will visit China in April.

    Ties between Britain and China had deteriorated for years under previous Conservative governments, when London curbed some Chinese investment over national security worries and expressed concern over a crackdown on political freedoms in Hong Kong.

    Kemi Badenoch, the leader of Britain's opposition Conservative Party, said on Wednesday she would not have gone to China because of the security risks the country poses.

    British security services say China routinely spies on the government. China denies the claims.

    STARMER HAILS IMPROVEMENT IN RELATIONSHIP

    Starmer, who was accompanied by more than 50 business leaders, said the relationship with China was now in "a strong place" and said he saw Xi as someone he could do business with.

    He described the meeting as warm and constructive, adding that the pair chatted about English Premier League soccer, which has a massive fan base in China, as they dined on roasted cod and sweet rice dumplings.

    "I made the promise 18 months ago, when we were elected into government, that I would make Britain face outwards again," Starmer told Xi at the summit talks.

    He gifted Xi a ball from a recent match between Manchester United, the Chinese president's favoured team, and the British premier's team Arsenal.

    PLAN TO TACKLE PEOPLE SMUGGLERS

    Starmer is also seeking Beijing's help to bolster security, announcing that the countries would jointly tackle gangs involved in trafficking illegal migrants.

    The deal focuses on reducing the use of Chinese-made engines for small boats that transport people across the Channel to claim asylum in Britain.

    British and Chinese officials will share intelligence to identify smugglers’ supply routes and work with Chinese manufacturers to prevent legitimate businesses from being exploited by organised crime, Downing Street said.

    After arriving in Beijing late on Wednesday, Starmer dined at a restaurant known for its speciality mushroom dishes. He practiced pronouncing the Chinese word for thank you - "xie xie" - with restaurant staff as he posed for photographs, a video posted on Weibo showed.

    (Reporting by Andrew MacAskill in Beijing; Additional reporting by Colleen Howe in Beijing; Writing by Andrew MacAskill, John Geddie and Kate Holton; Editing by Michael Perry, Gareth Jones and Alison Williams)

    Key Takeaways

    • •Starmer aims to improve UK-China economic relations.
    • •Meeting with Xi Jinping marks a diplomatic breakthrough.
    • •Focus on business opportunities and economic growth.
    • •Human rights issues to be addressed during the visit.
    • •UK and China to collaborate on tackling illegal migration.

    Frequently Asked Questions about Britain and China hail reset in ties as Starmer seeks 'sophisticated' relationship

    1What is economic growth?

    Economic growth refers to an increase in the production of goods and services in an economy over a period of time, typically measured by the rise in Gross Domestic Product (GDP).

    2What is a human rights concern?

    Human rights concerns refer to issues related to the basic rights and freedoms that belong to every person, which can include freedom of speech, the right to privacy, and protection from discrimination.

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