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    Home > Finance > UK's Starmer heads to China to repair ties as he navigates tensions with US
    Finance
    UK's Starmer heads to China to repair ties as he navigates tensions with US

    Published by Global Banking and Finance Review

    Posted on January 27, 2026

    4 min read

    Last updated: January 27, 2026

    UK's Starmer heads to China to repair ties as he navigates tensions with US - Finance news and analysis from Global Banking & Finance Review
    Tags:UK economyInternational tradeeconomic benefitsforeign investment

    Quick Summary

    UK PM Starmer visits China to strengthen economic ties amid US tensions, aiming to boost Britain's economy and trade relations.

    Table of Contents

    • Strengthening UK-China Relations
    • Economic Implications of the Visit
    • Political Context and Challenges
    • Security Concerns and Responses

    UK Prime Minister Starmer Visits China to Strengthen Economic Ties

    Strengthening UK-China Relations

    LONDON, Jan 27 (Reuters) - Prime Minister Keir Starmer will fly to China on Tuesday on the first visit by a British leader in eight years, in a bid to mend ties with the world's second-largest economy and reduce its dependence on an increasingly unpredictable United States.

    Starmer is the latest western leader to visit China, and his trip comes amid tensions between Britain and its longstanding closest ally - the United States - over President Donald Trump's threats to take control of Greenland. 

    Economic Implications of the Visit

    On a three-day visit accompanied by dozens of business executives and two ministers, Starmer will meet with Chinese leaders in Beijing and then travel to Shanghai, before a brief visit to Japan. 

    At the forefront of the visit "will be what both sides make of the current behaviour and posture of the U.S. and Trump," said Kerry Brown, professor of Chinese studies at King's College London. "One of the great anomalies of the current situation is that London is probably closer to Beijing than Washington" on some global issues like AI, public health and the environment.

    Since being elected in 2024, Starmer has made it one of his priorities to reset ties with China following a deterioration in relations under previous governments because of rows over Beijing's crackdown on pro-democracy protests in Hong Kong, a former British colony, and multiple allegations of espionage and cyberattacks. 

    BETTING ON CHINA TO BOOST BRITAIN'S ECONOMY 

    The visit gives China a chance to court another U.S. ally dealing with Trump's volatile trade policies following that of Canada's Prime Minister Mark Carney this month when the two countries agreed an economic deal.

    In response to Carney's visit, Trump threatened to impose 100% tariffs - effectively an embargo - on all Canadian goods and products coming into the U.S. if it follows through on the China trade deal.

    Beijing can be a reliable partner for countries because it advocates for a "multipolar world", the Chinese state-backed Global Times newspaper said on Monday.

    But Western leaders have had mixed results from their recent visits. While Carney struck a deal there that will slash tariffs on Chinese electric vehicles and Canadian canola oil, French President Emmanuel Macron's visit in December yielded relatively few economic benefits.

    Political Context and Challenges

    Britain wants closer economic and trade ties with China to help Starmer honour his pledge to improve living standards through investment in public services and the economy. But the strategy has drawn fierce criticism from some British and U.S. politicians.

    In the 12 months to the middle of 2025 China was Britain's fourth-largest trading partner, with trade totalling about 100 billion pounds ($137 billion), according to government data.

    Sam Goodman, a policy director at the China Strategic Risks Institute think tank in London, said Britain had so far secured few economic gains from trying to improve relations with Beijing. 

    China only accounts for 0.2% of foreign direct investment in Britain while the United States accounts for about a third, and Britain's market share for goods and services with China fell in the last year, he said. 

    "We have had a lot of concentrated engagement with this government on China, and the real question from this trip is what was it for?", he said. "Are there tangible outcomes that really point to meaningful growth in the British economy?"

    US WARNS CANADA OVER CHINA TIES 

    Security Concerns and Responses

    Starmer's visit comes after his government approved China's contested plans to build a mega-embassy in the heart of London, rejecting the objections from some politicians who said the new building will make it easier for China to conduct spying operations.

    Starmer laid the foundations for his trip last month when he said that China poses national security threats to Britain but that closer business ties were in the national interest.

    The visit also comes at a sensitive moment for relations between Western leaders and the United States because of Trump's claims that the United States needs to take control of Greenland because China poses a threat in the Arctic.

    ($1 = 0.7303 pounds)

    (Additional reporting by Ryan Woo; Editing by Hugh Lawson)

    Key Takeaways

    • •UK PM Keir Starmer visits China to improve economic ties.
    • •The visit aims to reduce reliance on the US amid tensions.
    • •China is seen as a potential economic partner for the UK.
    • •Critics question the tangible economic benefits for Britain.
    • •Security concerns arise over China's new embassy in London.

    Frequently Asked Questions about UK's Starmer heads to China to repair ties as he navigates tensions with US

    1What is the main topic?

    The main topic is UK Prime Minister Keir Starmer's visit to China to strengthen economic ties and navigate tensions with the US.

    2What are the economic implications of the visit?

    The visit aims to boost UK-China trade relations and reduce reliance on the US, but tangible economic benefits are questioned.

    3What security concerns are associated with the visit?

    Security concerns include China's new embassy in London, which some fear could facilitate espionage.

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