UK Secures £2.2 Billion Trade Deals and Investments During Prime Minister Starmer's China Visit

Prime Minister Starmer Concludes Landmark China Visit

British Prime Minister Keir Starmer has concluded a significant three-day visit to China, marking the first such trip by a UK Prime Minister in eight years. The visit, which took place from January 28 to 31, 2026, resulted in the securing of £2.2 billion in export deals and substantial new investments, alongside agreements aimed at fostering a more stable and strategic relationship between the two nations.

During his time in China, Prime Minister Starmer emphasized the importance of engagement, stating, 'We are bringing stability, clarity and a long-term strategy to how we engage with China, so we can bring home the benefits for businesses and for working people.' He added, 'Engaging with China is how we secure growth for British businesses, support good jobs at home, and protect our national security.'

Key Economic Outcomes and Tariff Reductions

A central achievement of the visit was the agreement to reduce tariffs on Scotch whisky from 10% to 5%. This move is projected to benefit the UK economy by an estimated £250 million over the next five years, enhancing the competitiveness of Scottish distillers in one of the world's fastest-growing consumer markets.

Beyond the direct export deals, the visit also secured approximately £2.3 billion in market access pacts over five years and hundreds of millions in new investments. Notable investment and trade agreements include:

  • Chinese entertainment brand POP MART confirmed plans to establish London as its regional hub and open up to seven stores across the UK, creating over 150 jobs.
  • Chinese global automotive manufacturer Chery Commercial Vehicles announced it would establish its European Headquarters in Liverpool.
  • Energy storage manufacturer HiTHIUM plans an investment of £200 million, expected to create 300 high-quality jobs in the UK.
  • British pharmaceutical leader AstraZeneca committed a £15 billion investment to expand its R&D programs in China.
  • Brompton Bikes is projected to achieve £111.5 million in sales to China over the next three years.
  • The World Snooker Tour secured a new major event in two Chinese cities, valued at £15 million over five years.
  • Glasgow Prestwick Airport announced £76 million in new business from expanded direct cargo routes to China, expected to create 250 jobs.

Broader Cooperation and Diplomatic Engagements

The visit also saw agreements on broader cooperation, including the reinstatement of key economic dialogues such as the Economic and Financial Dialogue and the Joint Economic and Trade Commission. Furthermore, China announced it would allow visa-free access for British nationals for visits of up to 30 days, a measure aimed at enhancing people-to-people engagement. The Chinese government also lifted sanctions on several UK parliamentarians.

Prime Minister Starmer's delegation included nearly 60 business and cultural organizations, underscoring the comprehensive nature of the engagement. The discussions covered various sectors, including agri-food, market regulation, media, and education, with both leaders expressing a desire for a long-term, stable, and consistent comprehensive strategic partnership.

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5 Comments

Avatar of Donatello

Donatello

Finally, some sensible engagement! Great for British businesses and jobs.

Avatar of Leonardo

Leonardo

The tariff reductions and new jobs are positive outcomes, yet the long-term strategic implications of deepening ties with China need careful consideration beyond just economics.

Avatar of Donatello

Donatello

More jobs, more investment, lower tariffs. A clear win for the UK!

Avatar of Michelangelo

Michelangelo

Smart move to re-engage with China. Diplomacy and trade always win.

Avatar of Donatello

Donatello

£2.2 billion is a drop in the ocean compared to the moral cost.

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