The UK on Wednesday reopened its trade dialogue with China after a gap of seven years as the Business and Trade Secretary reached Beijing for the UK-China Joint Economic and Trade Commission (JETCO).
Peter Kyle, who took charge at the UK’s Department for Business and Trade (DBT) in last week’s Cabinet reshuffle, said direct engagement with China was a strategic imperative to strengthen trade and address concerns in a constructive manner. The trade talks are aimed at boosting bilateral cooperation in sectors such as professional services, automotive, and healthcare.
The UK-China JETCO has remained stalled since 2018, when the then Boris Johnson-led Conservative Party government suspended dialogue over Beijing’s crackdown on pro-democracy protesters in Hong Kong and its stance in favour of Russia over the conflict with Ukraine.
“Serious and strategic engagement with the world’s foremost economic players is what will deliver for working people and businesses across the UK,” said Kyle, in a pre-visit statement before he arrived in Beijing after talks in Washington.
“More discussions and direct engagement with China will ensure trade between us can flourish, strengthen our national security, and create space to raise concerns constructively where needed,” he said.
The minister described restarting trade talks with China as an “essential tool” to put money into people’s pockets as part of the Labour government’s growth agenda. “British businesses will be an important part of my visit, helping open doors to greater commercial opportunities. It comes as new figures show nearly 2 billion pounds in export wins to China were supported by the government in the last financial year, with creative industries, retail, and healthcare among the biggest successes,” the minister noted.
DBT said Kyle will also raise challenges in the bilateral relationship, including human rights and level playing field issues that undermine fair competition for UK business. “These are the hallmarks of grown-up government when it comes to dealing with China, cooperating where we can and challenging where we must – never compromising on our national security,” DBT said.
According to official estimates, closer UK-China ties have the potential to provide greater access to British businesses to a country with a growing middle-class market that is forecast to contribute 23 per cent of global growth between 2023 and 2050. The ministerial visit this week is expected to deliver an ambitious package of more than 1 billion pounds of market access wins over five years across priority sectors targeted in the UK’s recent ‘Industrial Strategy’. China is dubbed a "huge market" for cars and easier access for British carmakers – who directly employ around 133,000 UK workers – is seen as a "massive UK export opportunity".
In addition to reopening trade talks, the UK Business and Trade Secretary is also set to co-chair the first Industrial Cooperation Dialogue (ICD) since 2022. The talks are aimed at promoting UK-China cooperation on industrial decarbonisation and the digital economy, and discuss standards that make it easier for UK automotive manufacturers to enter the Chinese market.
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