The UK and China are set to restart high-level trade discussions this week after a seven-year pause, with Britain’s new Business Secretary Peter Kyle preparing to negotiate access for British firms, as per a Bloomberg report.
The resumption of the Joint Economic and Trade Commission (JETCO) talks comes at a time when Prime Minister Keir Starmer is prioritising economic growth by boosting exports and improving Britain’s competitiveness in global markets.
Kyle, who took over from Jonathan Reynolds in a cabinet reshuffle on Friday, is expected to arrive in Beijing on Wednesday to lead the talks.
Market access package targeting cars, livestock, and education
Kyle’s team at the Department for Business and Trade (DBT) confirmed that the discussions will focus on easing barriers for UK businesses across a wide range of industries.
The proposed trade package includes measures to help British carmakers export to China more efficiently, while also opening opportunities for livestock-related exports such as cattle hides, sheep skins, and genetic material for pig breeding.
Education providers are also part of the agenda, with the UK aiming to secure recognition for British qualifications and services in the Chinese market.
DBT has estimated that the total value of the market access package could exceed £1 billion, providing a substantial boost to British companies across both traditional and knowledge-based sectors.
A shift in UK-China relations since the 2019 suspension
This round of trade talks marks the first since 2018, following the suspension of the dialogue by former Prime Minister Boris Johnson in 2019, after China’s crackdown on pro-democracy protests in Hong Kong.
During that period, the UK adopted a more cautious stance towards Beijing, including banning Huawei from infrastructure projects over security concerns.
Under Starmer, the UK is signalling a more pragmatic approach.
According to the DBT statement cited in the report, the government is pursuing a “pragmatic, careful and confident relationship” with China, balancing opportunities in trade and investment with space to raise sensitive issues, including human rights and competition practices.
China remains a crucial player in the global economy, projected to contribute 23% of worldwide growth between 2023 and 2050.
This scale of influence makes trade engagement vital, even as the UK continues to manage its commitments with Western allies.
Balancing US ties with China engagement
Kyle’s trip comes immediately after a visit to Washington, where he met senior White House advisers.
This timing highlights the balancing act Britain must perform between deepening economic engagement with China and aligning with the US, where President Donald Trump has urged allies to reduce ties with Beijing.
The Business Secretary will co-chair the Industrial Cooperation Dialogue alongside Chinese officials, the first since 2022.
The agenda includes industrial decarbonisation and the digital economy, two areas where collaboration is expected to help both nations modernise their industries while addressing climate concerns.
At the same time, Kyle is set to raise issues of human rights and business competition, ensuring that sensitive political topics remain on the agenda.
The approach reflects Labour’s attempt to pair economic diplomacy with values-based discussions, without derailing opportunities for trade.
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