China and the United Kingdom have voiced a strong desire and support for deeper economic engagement to unlock new growth opportunities in bilateral cooperation, as the two countries move to develop a long-term and consistent comprehensive strategic partnership.
Addressing a China-UK business roundtable on Tuesday in Yangzhou, Jiangsu province, Lu Kang, vice-minister of the International Department of the Communist Party of China Central Committee, said the “ice-breaking” moment in bilateral relations began with breakthroughs in trade ties.
Economic and trade cooperation has long served as both a stabilizer and a driving force in bilateral relations, Lu said.
In recent years, China-UK economic and trade cooperation has maintained steady growth. The UK is China’s third-largest trading partner, investment destination and source of foreign investment in Europe, while China is the UK’s largest trading partner in Asia.
James Sassoon, president of the China-Britain Business Council, said the 5.9 percent year-on-year increase in UK exports to China in the first quarter of this year was very encouraging.
China has recognized that it does not need to continue expanding its trade surplus with countries such as the UK, and is instead seeking to boost imports to stimulate domestic consumption, Sassoon said.
“The fact that the UK may be the first test bed for how we can help you increase imports of consumer goods is a great opportunity for us,” he said.
Speaking about investment in Britain, Sassoon said that Chinese battery and automobile manufacturers who are expanding into Europe would inevitably set up factories in his country.
“Wherever one looks, the opportunity is there … to significantly increase trade and investment between our countries,” he added.
In January, British Prime Minister Keir Starmer made a three-day official visit to China, which was the first by a UK prime minister in eight years. During the visit, the two sides signed 12 intergovernmental cooperation documents, covering trade, agriculture and food, culture, and market regulation.
Tom Simpson, managing director of China Operations and chief China representative at the China-Britain Business Council, said that stronger political ties are essential for maintaining constructive communication and cooperation in business and trade.
He described China’s visa-free policy for UK travelers as “a really important step” that would encourage more business people from the UK to visit China, understand the market and strengthen partnerships.
Highlighting trade in services as a major growth area, Simpson said that both sides are currently conducting a feasibility study on a future agreement in the sector, which could further expand cooperation in banking, finance, professional services, education, skills training and the creative industries. “We see that as a major opportunity for us to work on together,” he added.
Chu Daping, CEO of Cambridge University-Nanjing Center of Technology and Innovation, said the UK has strengths in fundamental research and innovation, while China offers a comprehensive industrial system, vast market potential and strong application capabilities.
Highlighting his center’s joint projects in biomedicine, healthcare, neuroscience and the integration of medicine and engineering, Chu noted that such cooperation promotes not only scientific research, but also people-to-people exchanges.
Jake Watkin, a managing partner at 8 Hours Ahead, a venture growth firm with headquarters in London, Shanghai and Hong Kong, said that China is becoming an increasingly important global destination for international technology companies due to its enormous market potential and advanced industrial ecosystem.