China and the UK are attempting to reset their relationship — here’s how

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

Starmer is on a 4-day visit to China, the first trip by a British prime minister in eight years — signaling an attempt at resetting relations between the two countries after years of distrust and acrimony.

The U.K. has often accused China of conducting espionage in the country, and labeled it as a long-term strategic challenge. Financial Times reported on Tuesday that British officials were planning to tighten scrutiny of Chinese activity over concerns about national security risks.

Beijing’s crackdowns on democratic protests in Hong Kong, a former British colony, and imposition of a sweeping national security legislature in 2020 further strained bilateral ties, while U.K. businesses in China have flagged a challenging business climate in the country.

The British government in December moved to clamp down on two tech companies based in China allegedly for carrying out cyberattacks that it said had undermined U.K. security and prosperity.

Against that backdrop, the statement on Thursday appears to signal a positive development in relations.

The two countries said they will expand cooperation in key areas including education, healthcare, finance and artificial intelligence research, biological sciences and new energy development, according to a statement released by Chinese state media.

Beijing will also consider opening visa-free entry for British nationals, the statement said, while urging London to create a fair and non-discriminatory environment for Chinese firms operating in the U.K.

Starmer told Xi at the start of the meeting that it was “vital that we build a more sophisticated relationship” allowing both sides to identify areas for further collaborations and dialogue, according to Reuters.

London will maintain high-level close communications with Beijing and deepen trade and investment partnerships, according to the Chinese readout.

Xi said that “unilateralism, protectionism and power politics have been rampant, severely impacting the international order,” urging major economic powers to “take the lead” in implementing international laws, “otherwise they will regress to a jungle-like world.” That’s according to a CNBC translation of the Chinese statement.

Starmer’s trip comes at a time when U.S. President Donald Trump’s foreign policy and tariff threats have unsettled traditional allies, while Beijing has hosted several Western leaders just this month including Canadian Prime Minister Mark Carney, Ireland’s Prime Minister Michael Martin — the first visit by an Irish leader in 14 years — and Finnish Prime Minister Petteri Orpo.

Starmer’s diplomatic shift appears to mirror that of Canada which signed a trade agreement with China earlier this month following a visit by Carney, as Ottawa appears to diversify trade and investment partners amid persistent frictions with Washington.

On Wednesday, Starmer called on dozens of British business leaders traveling with him to seize opportunities in the world’s second largest economy.

The U.K. government said in its statement Wednesday that it would pursue a “strategic and consistent relationship” with Beijing, seeking to bolster new investment and trade relations while remaining vigilant about potential security threats.

Last week, the U.K. government approved plans to open a new sprawling Chinese Embassy in London, after the proposal had stalled for years over political and security concerns.

U.K. businesses in China have been confronted with a deteriorating business environment for the past six consecutive years, according to the British Chamber of Commerce in China.

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

But there have not been strong signs of a broad shift toward withdrawing from the Chinese market, the report said, with many firms continuing to view China as a key market, although they appeared to be more cautious with expansion plans.

The U.K.’s trade deficit with China ballooned by over 18% year on year to 42 billion pounds ($58.1 billion) in the 12 months ending June 2025, according to the U.K. government data.

— CNBC’s Evelyn Cheng contributed to this report.