UK Prime Minister Keir Starmer Secures Trade and Economic Agreements in Landmark China Visit

New Era for UK-China Relations Forged in Beijing

British Prime Minister Keir Starmer concluded a landmark state visit to Beijing on January 29, 2026, marking the first such visit by a British leader in eight years. The visit, aimed at fostering closer trade and economic ties, has been hailed as signaling a new, pragmatic era in UK-China relations. Prime Minister Starmer, accompanied by a delegation of over 50 representatives from British businesses and cultural institutions, including the Chancellor of the Exchequer and the Secretary of State for Business and Trade, engaged in high-level discussions with Chinese President Xi Jinping and other senior officials.

The discussions focused on reviving relations after a period of disengagement, with Starmer emphasizing a 'pragmatic' approach to collaboration while maintaining distance on political and national security matters.

Key Economic and Trade Outcomes

The visit yielded several tangible agreements designed to enhance bilateral trade and investment. Among the most notable outcomes are:

• Visa-Free Travel: China agreed to relax visa rules for British citizens, allowing visa-free travel for stays under 30 days for both business and tourism purposes. This move aligns the UK with over 50 other countries benefiting from similar arrangements.
• Reduced Tariffs: Chinese tariffs on Scottish whisky will be halved, a measure projected to be worth an estimated £250 million to the UK over the next five years.
• Trade and Investment Deals: The visit secured approximately £2.2 billion in export deals and £2.3 billion in market access over the next five years. Additionally, hundreds of millions of pounds in investment from Chinese companies into the UK were announced.
• Services Trade Feasibility Study: Both nations agreed to conduct a 'feasibility study' to explore a bilateral services agreement. Such an agreement would establish clear and legally binding rules for UK firms operating in China, a significant development given the UK's position as the world's second-largest exporter of services.
• Major Corporate Investments: Pharmaceutical giant AstraZeneca committed to investing $15 billion in China by 2030, and UK energy supplier Octopus Energy announced its entry into the Chinese market.

Financial and Security Cooperation

Beyond direct trade, the visit also saw advancements in financial and security cooperation. A UK-China Financial Working Group was established, and the Bank of China's London Branch was designated as the UK's second renminbi (RMB) clearing bank, aiming to enhance London's role as a global financial hub. Agreements were also reached on pursuing cooperation in innovative biodiversity financing.

In a move towards enhanced security, both countries committed to jointly tackling gangs involved in migrant trafficking, particularly concerning the supply of small boat engines, and stemming the flow of synthetic opioids. This includes intelligence sharing to disrupt criminal operations.

Political Dialogue and Future Prospects

During the visit, President Xi Jinping agreed to lift Chinese sanctions on six British parliamentarians, a political gesture aimed at improving diplomatic channels. The leaders also discussed broader areas of cooperation, including education, healthcare, finance, and joint research in fields such as Artificial Intelligence, bioscience, new energy, and low-carbon technologies. The visit underscores a commitment to a 'coherent, consistent, and enduring China strategy' from the new Labour government, with economic and trade collaboration at its core.