The UK Prime Minister Keir Starmer’s visit to China from January 28 to 31, 2026, concluded with significant trade wins. This was the first time a British Prime Minister had visited China in eight years. Keir Starmer’s government is promoting what it calls a "consistent, pragmatic partnership with Beijing," moving away from the previous ‘golden era’ and subsequently ‘ice age.’ Keir Starmer’s government strategy has raised an important question: can this renewed cooperation inspire local entrepreneurs and attract new businesses to relocate to the UK, particularly from Asia?
Meanwhile, Chinese companies intending to enter the UK and employ foreign workers must obtain a UK sponsor licence. It is advisable to seek professional assistance with obtaining a UK Sponsor Licence for new businesses that require foreign workers to operate in the United Kingdom. This article explains Keir Starmer’s China business policy, including direct investment from China into the UK, and other relevant details.
Keir Starmer China Business Policy
On his visit to China, the UK Prime Minister Keir Starmer avoided the language of a return to the pre-2020 ‘golden era.’ Instead, his government frames its China policy as interest-led and selective. A group of about 50 business and cultural leaders, including top executives from firms such as HSBC, AstraZeneca, and Jaguar Land Rover, visited China alongside Kier Starmer.
Speaking in Beijing, Starmer acknowledged that China is the world's second-largest economy and the UK's third-largest trading partner, making engagement economically unavoidable. According to Reuters, this visit focused on stabilising trade relations, improving market access for UK firms, and restoring formal business dialogue mechanisms such as the UK-China CEO Council. This implies continuity and predictability, which are two major factors often cited by investors as more important than political warmth.
UK Economic Policy Towards China under Starmer
Keir Starmer’s approach, described as ‘pragmatic’ and ‘clear-eyed,’ seeks to stabilise a complex but economically vital relationship with China. According to him, the goal is to bring stability, clarity, and a long-term strategy to UK-China engagement. It also intends to secure growth for British businesses and support jobs in the United Kingdom.
The economic policy is built on a foundation of substantial existing ties between the UK and China. China is the UK's third-largest trading partner, and the UK exports to China support an estimated 370,000 British jobs. China also sits at the centre of global supply chains.
Keir Starmer’s late January 2026 visit to China aimed to deepen the commercial ties and unlock new opportunities. This visit helped the UK to realise £2.2 billion in export deals. It also helped to secure £2.3 billion in market access wins expected over the next 5 years.
The specific sectors covered in the deals between the UK and China include:
-
Authorisations for UK law firms to open representative offices in China. It also seeks to create Joint Legal Operations (partnerships) within the Shanghai Free Trade Zone.
-
Approvals for British innovative vaccines and medical device products for export to China. It also seeks expanded access to medicines for Chronic Obstructive Pulmonary Disease (COPD) and broader opportunities for healthcare services in three Chinese provinces.
-
A memorandum of understanding (MoU) was signed to facilitate faster, streamlined registration with China Customs for food manufacturers.
-
China is committed to enabling the import of classic and vintage cars from the UK.
-
China agreed to cut tariffs on Scotch whisky from 10% to 5%, a move estimated to be worth over £250 million to the UK economy over 5 years.
-
Other agreements cover retail and sports, including the expansion of the World Snooker Tour in China.
Foreign Direct Investment from China into the UK
While UK companies have committed to investing in China, the UK China trade cooperation 2026 highlighted the UK's market attractiveness to Asian companies. Under this Keir Starmer China business policy, a series of concrete corporate investment announcements were made, including:
HiTHIUM
HiTHIUM is one of the top producers of energy storage systems worldwide. This company is set to invest about £200 million in the UK and create about 300 top-notch energy storage jobs for UK residents. HiTHIUM’s investment will strengthen the UK's economy and increase the reliability of the country's energy grid.
Chery Commercial Vehicles
Chery Commercial Vehicles, a prominent Chinese automotive manufacturer, announced it will open its European headquarters in Liverpool. This aligns with their goal of committing to supporting the local green supply chain and creating jobs.
Pop Mart
Pop Mart, the Chinese entertainment brand known for its collectable toys, especially the popular Labubus, confirmed plans to establish London as its European hub. The company will open up to 27 new stores across Europe. It intends to open about 7 new stores in the United Kingdom and create over 150 jobs for UK residents.
Asymchem
Asymchem, a life sciences company, announced a major expansion of its UK operations. This expansion is expected to create up to 150 highly skilled jobs in R&D and next-generation manufacturing over the next 5 years. This follows as the UK solidifies its position as Europe's leading life sciences economy, with the industry generating over £146 billion in annual revenue.
Conclusion
UK business relations with China under Keir Starmer have undeniably opened a new, more productive chapter in bilateral ties. Keir Starmer’s business policy toward China attracted Chinese investors willing to invest in the United Kingdom, creating numerous job opportunities for British citizens. For UK entrepreneurs, this means new markets and potential partners. For Chinese businesses looking to relocate to the UK, the UK is actively welcoming global talent through a recently updated functional immigration system. When establishing companies in the UK, Chinese employers must obtain a UK sponsor licence to sponsor foreign workers to work for their UK-based companies. It is advisable to consult with an immigration lawyer to ensure compliance with UK immigration rules, including obtaining a UK sponsor licence when relocating a business to the UK.