BUSINESS

Starmer Hails ‘Real Progress’ on U.K.-China Ties With Key Deals

Published: Jan. 30, 2026 6:32 p.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

U.K. Prime Minister Keir Starmer attends the opening ceremony and delivers a speech at the U.K.-China Business Forum on Jan. 30. Photo: Lu Yutong/Caixin

British Prime Minister Keir Starmer hailed “real progress” on lower whisky tariffs and visa-free travel during the first visit by a U.K. leader to China in eight years.

This trip signals a diplomatic reset as London seeks to balance economic growth with geopolitical pressures. It aims to thaw relations with Beijing that had cooled in recent years due to issues such as human rights, Hong Kong and national security.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

UK Prime Minister Keir Starmer visited China, marking the first UK leader's trip there in eight years and achieving progress on lower whisky tariffs and potential visa-free travel.
The visit led to Beijing halving whisky tariffs, new business partnerships, the designation of a second UK renminbi clearing bank, and 12 cooperation agreements.
AstraZeneca plans to invest $15 billion in China by 2030; UK-China goods trade reached $103.7 billion in 2025.

AI generated, for reference only

Who’s Who

Bank of China Ltd. London Branch: The Bank of China Ltd. London Branch has been designated as the second renminbi clearing bank in the U.K. This agreement was one of the outcomes of British Prime Minister Keir Starmer's visit to China, signaling a strengthened economic relationship between the two countries.

HSBC Holdings PLC: HSBC Holdings PLC (汇丰控股有限公司) was part of the British delegation accompanying Prime Minister Keir Starmer on his visit to China. This visit aimed to improve Anglo-Chinese relations and foster economic growth.

British Airways PLC: British Airways PLC was part of a delegation accompanying British Prime Minister Keir Starmer during his visit to China. This visit, the first by a U.K. leader in eight years, aimed to re-establish diplomatic and economic ties between the two countries.

AstraZeneca PLC: AstraZeneca PLC, a British-Swedish drugmaker, was part of the delegation accompanying British Prime Minister Keir Starmer on his visit to China. The company announced plans to invest $15 billion in China by 2030, aiming to utilize China's research and manufacturing capabilities for developing innovative therapies globally.

Octopus Energy Ltd.: Octopus Energy Ltd. (章鱼能源有限公司) is a British company. It was part of a delegation accompanying British Prime Minister Keir Starmer on his visit to China. Octopus Energy signed an agreement with Chinese firm PCG Power Development Co. Ltd. to form a 50-50 joint venture named Bitong Energy in Guangzhou, aiming to introduce AI-driven power trading to China.

PCG Power Development Co. Ltd.: PCG Power Development Co. Ltd. (北京融合电力科技有限公司) is a Chinese distributed renewable energy developer. They recently signed a joint venture deal with Octopus Energy to bring AI-driven power trading to China. This 50-50 venture, named Bitong Energy, will combine Octopus Energy's algorithmic capabilities with PCG Power's connections to industrial electricity users and understanding of China's market rules.

Bitong Energy: Bitong Energy is a 50-50 joint venture registered in Guangzhou, China. It is formed by the Chinese distributed renewable energy developer PCG Power Development Co. Ltd. and Octopus Energy. The company aims to integrate Octopus Energy's AI-driven power trading algorithms and price forecasting with PCG Power's connections to industrial electricity users and knowledge of China's market rules.

AI generated, for reference only

What Happened When

2025：: Goods trade between China and the U.K. reached $103.7 billion, according to China’s Ministry of Commerce (reported in January 2026).

January 29, 2026：: British Prime Minister Keir Starmer met with Chinese President Xi Jinping and Premier Li Qiang in Beijing.

January 29, 2026：: AstraZeneca announced a plan to invest $15 billion in China by 2030.

January 30, 2026：: Keir Starmer spoke at the opening of the U.K.-China Business Forum in Beijing.

January 30, 2026：: Beijing agreed to cut the import tariff on whisky from 10% to 5% and considered granting visa-free access to British citizens, according to Xinhua.

January 30, 2026：: Both sides agreed to designate Bank of China Ltd. London Branch as the second renminbi clearing bank in the U.K., establish a climate/nature partnership, and resume the China-U.K. security dialogue.

January 30, 2026：: Leaders witnessed the signing of 12 cooperation documents covering trade, agri-food, culture, market regulation, and law enforcement.

January 30, 2026：: PCG Power Development Co. Ltd. signed a deal with Octopus Energy to set up the Bitong Energy joint venture for AI-driven power trading in China.