China and Britain are trying to restore relations – here’s how

After years of strained ties, China and Britain vowed to develop a long-term strategic partnership after a high-stakes meeting between Chinese President Xi Jinping and British Prime Minister Keir Starmer on Thursday.

Starmer is on a four-day visit to China, the first by a British prime minister in eight years, in an attempt to restore relations between the two countries after years of mistrust and tension.

Britain has often accused China of spying on the country, calling it a long-term strategic imperative. The Financial Times reported on Tuesday that British officials plan to step up scrutiny of Chinese activities amid concerns about national security risks.

Beijing’s crackdown on pro-democracy protests in the former British colony of Hong Kong and the introduction of a sweeping national security law in 2020 have further strained bilateral ties, while UK business in China has marked a difficult business climate in the country.

The UK government moved in December squeezing two tech companies Based in China for cyber-attacks that have undermined the security and prosperity of the UK.

Against this backdrop, Thursday’s statement appears to signal a positive development in relations.

According to a statement carried by Chinese state media, the two countries will expand cooperation in key areas such as education, health, finance and artificial intelligence research, biological sciences and new energy development.

Beijing is also considering visa-free entry for British nationals, the statement said, urging London to create a fairer and non-discriminatory environment for Chinese firms operating in the UK.

Starmer told Xi at the start of the meeting that it was “important that we build a more complex relationship” that would allow the two sides to identify areas for further cooperation and dialogue. Reuters.

London will establish close contact with Beijing at the highest level and deepen trade and investment partnership, according to a Chinese report.

Xi said that “unilateralism, protectionism and power politics have greatly affected the international order and become widespread” and called on major economic powers to “take the lead” in enforcing international laws, “otherwise they will return to a jungle-like world.” This is according to the CNBC translation of the Chinese statement.

Starmer’s visit comes as U.S. President Donald Trump’s foreign policy and tariff threats have unnerved traditional allies, and Beijing hosted several Western leaders this month, including Canadian Prime Minister Mark Carney and Irish Prime Minister Michael Martin. First visit by an Irish leader in 14 years — and Prime Minister of Finland Petteri Orpo.

Starmer’s diplomatic shift mirrors the situation in Canada, which signed a trade deal with China after Carney’s visit earlier this month, as Ottawa looks to diversify its trade and investment partners amid ongoing friction with Washington.

On Wednesday, Starmer urged dozens of British business leaders traveling with him to take advantage of opportunities in the world’s second-largest economy.

The UK government said in a statement on Wednesday that a “strategic and consistent communication” It is wary of potential security threats as it seeks to forge new investment and trade ties with Beijing.

Last week, the British government approved plans to open a new Chinese embassy in London after the proposal had been stalled for years due to political and security concerns.

According to the British Chamber of Commerce in China, UK businesses in China have faced a worsening business environment for the past six consecutive years.

Nearly 60% of more than 300 British firms surveyed said doing business in the country is more difficult than it was a year ago, the body said in a December report. “The overall business landscape remains complex and often unpredictable,” the report said, citing economic slowdowns, regulatory pressures and geopolitical risks.

But there were no strong signs of a broader shift away from the Chinese market, the report said, with many firms continuing to view China as a key market but appearing cautious about expansion plans.

Britain’s trade deficit with China rose more than 18% year-on-year to £42 billion ($58.1 billion) in the 12 months ending June 2025, according to UK government data.

— CNBC’s Evelyn Cheng contributed to this report.