Starmer's China visit not a tightrope act

SONG CHEN/CHINA DAILY

While his itinerary — sampling cuisine,定西新闻网杨瑞英 touring the Forbidden City — may suggest a leisurely journey, British Prime Minister Keir Starmer's visit to China, the first of such a level in eight years, carries substantial diplomatic weight. The trip is driven by the dual objectives of improving bilateral relations with China and advancing cooperation in high-end manufacturing and finance, while navigating potential external pressure from Washington.

Starmer visited China with a high-level delegation of 60 political and business leaders. The two sides reached practical cooperation outcomes across various fields, including politics, economy and trade, finance, security, legislation and people-to-people exchanges and committed to developing a long-term, consistent, comprehensive strategic partnership. They resumed the China-UK high-level security dialogue, convened meetings of the China-Britain Business Council, established a financial working group and held its inaugural meeting.

While leaders from countries such as France, Canada and Finland have also visited China recently, the UK prime minister's trip is not an act of "following suit" but reflects the unique trajectory of Sino-UK relations. Contrary to suggestions that the visit is driven solely by economic interests, the UK's GDP, inflation, and employment data for 2025 remain stable, with some indicators even showing improvement. Rather, the visit aims to improve China-UK relations and rekindle the "Golden Era" of bilateral relations.

China-UK relations have been advancing amid twists and turns. In late 2013, then prime minister David Cameron described London as Beijing's "best partner" in the West. In 2015, President Xi Jinping visited the UK, which ushered in the "Golden Era". However, following the UK's decision to leave the European Union in 2016 and its subsequent adjustments to its China policy, Sino-UK relations cooled sharply.

Since the Labour Party led by Starmer assumed office in 2024, restoring ties with China has been regarded as a crucial step of rebuilding Britain's international standing. Several senior UK officials have visited China consecutively to this end. Under the guidance of both leaders, China-UK relations have begun to recover. Notably, before Starmer's departure for Beijing, the long-pending issue of China's purchase of the former Royal Mint Court site in London for its new embassy — which had been repeatedly obstructed for various reasons — was satisfactorily resolved.

In Sino-UK trade relations, cooperation in high-end manufacturing and finance exemplifies high-quality collaboration. There is significant potential for cooperation in high-end manufacturing, given the UK's strengths in areas such as luxury car and aircraft engine production. Notably, a Sino-British joint venture in aviation maintenance has recently been established and commenced operations in Beijing. Within China's vast market for commercial aircraft, cooperation in the aviation sector between the two countries holds considerable promise for future growth.

Financial cooperation also enjoys broad prospects. Bilateral financial collaboration started early, has progressed rapidly, and holds significant promise, especially as China pursues high-level opening-up of its financial sector. As early as 2012, the UK formally established London as a center for international renminbi business. The two countries have not only signed and renewed a bilateral local currency swap agreement, but China has also designated a renminbi clearing bank in London. The UK became the first economy outside Asia to obtain an initial quota of the Renminbi Qualified Foreign Institutional Investor program, the first Western country to issue renminbi-denominated sovereign bonds, and the first Western developed economy that includes the renminbi in its foreign exchange reserves.

London has long developed into one of the most dynamic and important renminbi trading hubs and offshore markets. Financial cooperation between China and the UK, including initiatives such as the Shanghai-London Stock Connect, contributes to advancing renminbi internationalization and improving the international monetary system. The outcomes of Starmer's visit also include welcoming the Bank of China London Branch as the second renminbi clearing bank in the UK and a commitment to jointly hosting the China-UK insurance forum.

London is able to uphold an independent foreign policy. As early as 2015, despite opposition from Washington, the UK joined the Asian Infrastructure Investment Bank, a decision later followed by countries such as Germany and France, contributing to the development of the AIIB into a multilateral financial institution with 111 members. Prior to his visit to China, Starmer explicitly stated that London would not make a choice between Beijing and Washington, just as he had earlier affirmed that it would not take sides between China and the EU. As an economy with high external dependency, the country has consistently opposed unilateralism and protectionism while advocating for free trade. Starmer's visit helps strengthen China-UK cooperation in trade and investment, improving the global economic and investment landscape. In terms of people-to-people exchanges, the UK has been a leading destination for Chinese students studying overseas. Amid various restrictions imposed by the US on Chinese students, many have chosen to pursue their studies in the UK.

London's efforts to improve relations with China are not a matter of "walking a tightrope" between Beijing and Washington. While the UK and the US share a special relationship, are both members of the G7 and the Five Eyes alliance, certain US policies — such as indiscriminate tariffs, its transactional approach to the Ukraine crisis, and its strategic ambition in regions such as Greenland, all under the "America First" banner — have sparked discontent in London due to disregard for allies' concerns. In seeking to strengthen ties with China, the UK is, to some extent, also pursuing a form of de-risking from Washington. This move undermines the China containment strategy long championed by certain Western powers.

The author is a research fellow of the Chongyang Institute for Financial Studies at the Renmin University of China.