China and the UK are trying to reset relations – here’s how

After years of tension, China and the UK are aiming to forge a long-term strategic partnership following high-stakes talks between Chinese President Xi Jinping and British Prime Minister Keir Starmer.

Prime Minister Starmer’s four-day visit to China will be the first by a British Prime Minister in eight years. This suggests an attempt to mend relations between the two countries, which have long been mistrusted and acrimonious.

Bilateral relations have been strained by Beijing’s crackdown on pro-democracy protests in the former British colony of Hong Kong and the imposition of a sweeping national security law in 2020, while British companies in China are showing signs of a tough business environment in China.

Britain has frequently accused China of conducting domestic espionage activities and has labeled this a long-term strategic challenge. The Financial Times reported on Tuesday that British authorities plan to step up scrutiny of Chinese activities, citing national security concerns.

Last December, the British government also cracked down on two China-based tech companies for allegedly carrying out cyberattacks that undermined Britain’s security and prosperity.

Against this backdrop, Thursday’s developments signal a positive change in relations.

The two countries will expand cooperation in key areas including education, medicine, finance, artificial intelligence research, biological sciences and new energy development, according to a statement released by Chinese state media on Thursday.

The statement said the Chinese government would also consider allowing visa-free entry for British nationals and called on London to create a fair and non-discriminatory environment for Chinese companies operating in the UK.

Reuters reported that Starmer told Xi at the beginning of the meeting that it was “important that we build a more sophisticated relationship” so that both sides could identify areas for further cooperation and dialogue.

According to the Chinese statement, London plans to maintain close high-level communication with the Chinese government and deepen trade and investment partnerships.

Starmer told reporters after the summit with Xi that the meeting was “positive” and had a “productive outcome”, adding that the relationship was “good and strong”, according to Reuters.

Starmer’s visit comes at a time when U.S. President Donald Trump’s foreign policy and tariff threats are unsettling traditional allies, while Beijing has hosted several Western leaders this month, including Canadian Prime Minister Mark Carney, Irish Prime Minister Michael Martin, who is making the first trip by an Irish leader in 14 years, and Finnish Prime Minister Petteri Olpo.

Mr. Xi told Mr. Starmer that “unilateralism, protectionism, and authoritarianism are rampant, and they are having a serious impact on the international order.” Mr. Xi also called on economic powers to “take the lead” in enforcing international law, saying, “otherwise we will retreat into a jungle-like world.” This is clear, according to CNBC’s translation of the Chinese statement.

Mr. Starmer’s diplomatic shift appears to mirror that of Canada, which signed a trade deal with China earlier this month following Mr. Carney’s visit, as Ottawa looks to diversify its trade and investment partners amid continued friction with Washington.

Mr Starmer on Wednesday called on dozens of British business leaders accompanying him to seize opportunities in the world’s second-largest economy.

The UK government said in a statement on Wednesday that it would pursue a “strategic and consistent relationship” with Beijing, with a view to strengthening new investment and trade ties, while remaining alert to potential security threats.

The British government last week approved plans to open a vast Chinese embassy in London, but the plan has been stalled for years over political and security concerns.

The positive development comes as British companies in China battle a worsening business environment for the past six consecutive years, according to the British Chambers of Commerce in China.

The group said in a December report that nearly 60% of more than 300 British companies surveyed said it was now more difficult to do business in the country than a year ago. “The overall business landscape remains complex and often unpredictable,” the report said, citing a slowing economy, regulatory pressures and geopolitical risks.

However, the report said there were no strong signs of a broader move to exit the Chinese market, and while many companies continued to see China as a key market, they appeared to be more cautious about their expansion plans.

Like several other countries, the UK faces a strained trading relationship with the Chinese government. Britain’s trade deficit with China rose by more than 18% year on year to £42 billion ($58.1 billion) in the 12 months to June 2025, according to government data.

—CNBC’s Evelyn Cheng contributed to this report.