Reporter’s Notebook: Starmer’s Beijing Bet — Economic Realism Ends an Eight-Year Hiatus

1. Keir Starmer visited Beijing from January 28 to 31, marking the first visit by a British prime minister to China in eight years. He highlighted the elapsed time since the last visit, emphasizing the need for renewed engagement. Starmer was accompanied by a large delegation of 60 business and cultural leaders, illustrating the economic focus of the visit, in contrast to previous British visits that were either highly ceremonial or marked by diplomatic caution. The official delegation was notable for its emphasis on trade and economics over security, reflecting the economic imperatives shaping U.K. foreign policy with China. [para. 1][para. 2]

2. The diplomatic context was fraught, as Starmer’s trip came shortly after Canadian Prime Minister Mark Carney faced tariff threats from U.S. President Donald Trump following Canadian-Chinese engagement. Trump criticized Britain’s warming ties with China as “very dangerous.” Despite American pressure, Starmer prioritized economic recovery for the U.K., which faces a severe cost-of-living crisis and stagnant growth, over concerns about a diplomatic backlash from Washington. [para. 3]

3. Starmer’s visit delivered targeted economic outcomes. China announced consideration of unilateral visa-free travel for U.K. citizens and halved tariffs on British whisky from 10% to 5%. Major business deals included AstraZeneca’s commitment to invest $15 billion in China by 2030, and a €1 billion ($1.1 billion) energy storage platform launched by Schroders and CATL. Meetings with President Xi Jinping emphasized shared responsibilities as UN Security Council members and linked economic cooperation to improving domestic living standards in both countries. Starmer explicitly tied deeper Chinese relations to alleviating U.K. cost-of-living pressures, especially due to rising energy bills since the Russia-Ukraine conflict. [para. 4][para. 5]

4. The visit also witnessed innovative new business models. The most emblematic was the Octopus Energy and BYD partnership launching the U.K.’s first Vehicle-to-Grid (V2G) package, enabling British drivers to lease a BYD electric vehicle and charge it for free for an all-in monthly fee of under £300 ($410). With intelligent charging that supports the national grid and saves users up to £1,000 annually compared to gasoline cars, this British-Chinese collaboration seeks to solve energy affordability and sustainability issues and will expand into China via a new joint venture. [para. 6][para. 7][para. 8]

5. Yet, U.K.-China relations remain constrained by geopolitics. The Biden administration coordinated with allies on tech policy, but Trump’s return to office led to aggressive tariff threats. Still, U.K. business leaders remain steadfast; Standard Chartered CEO Bill Winters stressed that geopolitical pressures would not deter U.K.-China cooperation. CBBC Chair Sebastian Wood highlighted that modern trade depends less on high-profile summit deals and more on continuous, practical commercial engagement. [para. 9][para. 10][para. 11]

6. Trade data shows British goods exports to China declined 1.2% to £24.7 billion last year, but the U.K. enjoys an £11.4 billion surplus in services. Both countries agreed to a feasibility study for a bilateral trade in services deal, reflecting China’s pivot toward a more service-oriented economy. Chinese investment is shifting to local U.K. manufacturing, such as funding a Sunderland battery gigafactory projected to create 1,000 jobs. Chinese firms increasingly localize operations to bypass protectionism. [para. 12][para. 13]

7. The visit advanced stalled cultural and diplomatic projects, approving a new Chinese embassy in London. Starmer used soft power by engaging with popular British cultural figures in China and referencing his family’s embrace of Chinese pop culture. He acknowledged the necessity of modern diplomatic infrastructure and praised cultural exchange. [para. 14][para. 15]

8. In concluding remarks, Starmer invoked the Chinese idiom “blind men feeling the elephant,” urging better Western understanding of China and advocating engagement as a pathway to build trust and raise difficult topics. For post-Brexit Britain facing economic headwinds, including high inflation, disengagement from China is no longer seen as viable; Starmer’s strategy bets that economic recovery depends on fostering relations with Beijing, despite political tensions with Washington. [para. 16][para. 17][para. 18]

9. The article was reported by Wang Liwei for Caixin Media. [para. 19]