UK-China Relations on the Mend: Highlights from Starmer's Historic Visit

Tue Feb 03 2026 19:00:34 GMT+0200 (Eastern European Standard Time)

Sir Keir Starmer's recent visit to China marks a significant thaw in diplomatic relations, as both nations seek renewed opportunities for trade, investment, and cooperation amidst global economic challenges.

In a bid to reset the longstanding diplomatic tensions, UK Prime Minister Sir Keir Starmer has embarked on a visit to China, the first by a UK leader in eight years. This visit not only aims to strengthen economic ties but also promotes collaborations in key sectors such as healthcare, green technology, and finance. Significant agreements included AstraZeneca's $15 billion investment in the Chinese market and a reduction in tariffs on Scotch whisky. Both countries express optimism for future economic collaboration despite existing challenges in the business environment.

End of the 'Ice Age'

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 aimed to show that China can be a reliable partner for Western economies, despite ongoing tensions with the United States.

Although no sweeping free trade deal was reached, the visit marked a cautious but tangible reset of UK–China economic ties with agreements on visas, services, healthcare, green technology, and finance.

Key Agreements

The biggest commercial announcement came from AstraZeneca, which promised to invest $15 billion (£11 billion) in China over the next four years, aiming to expand research and production capabilities.

In the energy sector, British firm Octopus Energy is setting foot in China through a partnership with PCG Power to develop a digital platform for electricity trading.

As part of the discussions, China has agreed to halve tariffs on Scotch whisky, which could potentially generate £250 million for the UK economy over five years. Additionally, visa-free travel for British citizens visiting China for up to 30 days was agreed upon.

Challenges Ahead

While the developments are promising, foreign businesses have long raised concerns about complex regulations and lack of transparency in China. These challenges could complicate future investment decisions.

Despite the scrutiny surrounding his visit, Sir Keir emphasized the pragmatic value of enhancing UK-China relations while navigating global geopolitical risks. His visit aligns with efforts from other global leaders seeking to diversify trade partnerships amidst an unpredictable U.S. economic stance.