Keir Starmer Visits China: A Step Towards Economic Reconnection

Mon Feb 02 2026 23:50:32 GMT+0200 (Eastern European Standard Time)

UK Prime Minister Keir Starmer's recent visit to China marks an important moment in the re-establishment of economic ties, signaling potential growth in trade and investment opportunities between the two nations.

Keir Starmer's trip to China aims to repair UK-China relations after a period of diplomatic tension. The visit included significant investment announcements from British firms, a commitment to tariff reductions on Scotch whisky, and new agreements on visas and cooperation against migrant smuggling. Both nations seek to bolster economic partnership amidst complex global dynamics.

Sir Keir Starmer's visit to China this week is the clearest sign yet the two countries are seeking to end the diplomatic ice age that has defined their relationship.

Both leaders face economic pressures at home and are seeking new opportunities for trade and investment.

For Sir Keir, the first UK prime minister to visit China since Theresa May in 2018, the trip was a chance to highlight the strength of British firms in finance, pharmaceuticals, healthcare, clean energy and car making.

President Xi Jinping, meanwhile, aimed to show that China can be a reliable partner for Western economies, as US President Donald Trump continues to rattle the global trading system.

Although no sweeping free trade deal was reached, the visit marked a cautious but tangible reset of UK–China economic ties.

Agreements on visas, services, healthcare, green technology and finance, combined with revived dialogue, might lead to better access for British firms to Chinese markets and greater Chinese investment in the UK.

The biggest commercial announcement came from AstraZeneca, which promised to invest $15bn (£11bn) in China over the next four years, to expand research and the manufacturing of medicines – the company's biggest investment in China to date.

In the energy sector, British firm Octopus Energy is entering the Chinese market for the first time through a partnership with local company PCG Power to develop a digital platform for trading electricity.

The project aims to improve efficiency in the power system and support China's efforts to increase the use of renewable energy.

For Octopus, which has grown quickly in the UK, the deal allows entry into China's large and growing energy market, where demand for clean energy and digital trading is rising.

China also agreed to halve tariffs on Scotch whisky, a deal the UK government said could generate £250m for the British economy over the next five years.

The Prime Minister's visit, the first in eight years, is a significant moment, signalling the importance of the economic relationship between the UK and China. Despite scrutiny at home, improving relations with the world's second-largest economy has been a priority for the British prime minister, exemplified by recent interactions that highlight cooperation in various sectors.