Xi and Starmer deepen cooperation on trade, visas, and technology amid visit

China and the United Kingdom moved cautiously toward rebuilding their relationship on Thursday, with President Xi Jinping telling Prime Minister Keir Starmer that Beijing was willing to develop a long-term strategic partnership after years of diplomatic strain and mistrust.

The remarks came during Starmer’s four-day visit to China, the first by a British prime minister in eight years, and underscored a broader effort by both sides to stabilise ties amid shifting global political and economic dynamics.

The two countries agreed to expand cooperation in areas such as education, healthcare, finance, artificial intelligence, biological sciences and new energy, according to a statement released by Chinese state media.

Beijing also said it would consider visa-free entry for British nationals, while urging London to ensure a fair and non-discriminatory environment for Chinese companies operating in the UK.

Starmer described Britain’s approach as an attempt to build “more sophisticated” ties with China, according to a Reuters report.

“We had a very good, productive session with real, concrete outcomes and it was a real strengthening of the relationship and that’s in the national interest, because, of course, there are huge opportunities here in China as the second biggest economy in the world, and that’s why we’ve got such a big business delegation,” Starmer said after the meeting.

“And we made some really good progress on tariffs for whisky, on visa-free travel to China, and on information exchange and co-operation on irregular migration, focusing particularly on small boats and engine parts. So a very good, constructive meeting with real outcomes, and that’s very much in our national interest.”

A fragile reset after years of tension

The diplomatic overture marks a significant shift after a period of heightened friction.

The UK has previously accused China of espionage and described it as a long-term strategic challenge.

Beijing’s crackdown on democratic protests in Hong Kong and the imposition of a sweeping national security law in 2020 further deepened mistrust.

Starmer’s visit reflects a recalibration of policy at a time when traditional alliances are being tested.

US President Donald Trump’s foreign policy stance and tariff threats have unsettled Western partners, while China has stepped up engagement with Western leaders in recent weeks, hosting visits by Canadian Prime Minister Mark Carney, Irish Prime Minister Micheál Martin, and Finnish Prime Minister Petteri Orpo.

Xi used the meeting to criticise rising unilateralism and protectionism, warning that power politics were undermining the international order and calling on major economies to uphold international rules.

Economic ambitions meet business realities

The UK government has framed its China strategy as pragmatic but cautious.

London said it would pursue a “strategic and consistent relationship” with Beijing, seeking to strengthen trade and investment links while remaining vigilant about security risks.

Starmer also urged British business leaders travelling with him to explore opportunities in China, the world’s second-largest economy.

However, the commercial backdrop is far from straightforward.

British companies operating in China have faced a deteriorating business environment for six consecutive years, according to the British Chamber of Commerce in China.

Nearly 60% of surveyed firms said conditions had worsened over the past year, citing economic slowdown, regulatory pressures, and geopolitical uncertainty.

Despite these challenges, most companies have not significantly scaled back their presence, viewing China as a critical market while adopting a more cautious approach to expansion.

The economic imbalance between the two countries remains stark.

The UK’s trade deficit with China rose by more than 18% to 42 billion pounds in the 12 months ending June 2025, according to official data.

Diplomacy amid geopolitical shifts

Recent policy moves suggest a gradual warming of ties.

The UK government last week approved plans for a new Chinese embassy in London, ending a long-running impasse driven by political and security concerns.

Starmer’s outreach also echoes Canada’s recent effort to diversify trade partnerships, following Ottawa’s trade agreement with Beijing earlier this month.

Yet the reset remains tentative. Deep disagreements over security, human rights, and economic practices persist, raising questions about how far the rapprochement can go.

For now, the visit signals a pragmatic attempt by both sides to manage rivalry and revive dialogue at a moment when global alliances and economic strategies are in flux.

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