LONDON — Chancellor Rachel Reeves and Trade Secretary Peter Kyle will embark on a significant trip to China next week, aiming to strengthen the economic relationship between the UK and the Asian superpower. They will join Prime Minister Keir Starmer, who is set to lead a delegation comprising around 50 top executives and chairs from various business and cultural organizations.
High-profile delegation and industry focus
The delegation includes executives from major financial institutions like HSBC, Standard Chartered, and the London Stock Exchange Group, indicating a strong focus on financial services. Additionally, the chair of the Financial Conduct Authority (FCA) is also expected to be part of this important journey.
This visit comes amid escalating international pressure for the UK government to adopt a firmer stance on issues like Chinese industrial overcapacity, as well as growing concerns at home regarding the recent approval of a super-embassy near the Tower of London, despite various security apprehensions.
“It’s substantially important for businesses,” said a senior business representative, who spoke on the condition of anonymity. “In terms of conversation and talk, there’s a step change under the new government,” they noted, highlighting the Labour party’s swift progress since assuming office.
Industry insiders revealed that the UK is advocating for a Memorandum of Understanding that would enhance trade in services, facilitate the recognition of professional qualifications for sectors including accountancy, design, and architecture, and ensure visa-free access for British citizens traveling to China for short-term business purposes.
Market opportunities and tariff discussions
Moreover, the UK is optimistic about negotiations regarding whisky tariffs, following China’s decision in February 2025 to double its import tariffs on whisky and brandy, moving from a provisional 5 percent to a 10 percent rate.
British and Chinese financial regulators are anticipated to convene in Beijing as part of efforts to connect the London stock market with Shanghai and Shenzhen markets, while also addressing cross-border data sharing challenges. The Stock Connect initiative, launched in 2019, has already opened channels for investment, resulting in listings on the London Stock Exchange worth nearly $6 billion, according to FCA Chair Ashley Alder.
Alder previously noted that while technical barriers have hindered the full potential of Stock Connect, the forthcoming Memorandum of Understanding with China’s National Financial Regulatory Administration is crucial to establishing mechanisms for rapid information sharing and effective oversight across borders.
“The goods wins are easier,” the senior business representative explained. “Some of the service ones are more difficult. The issues that financial services firms have in China [are] around access to sensitive data and the transfer of money.”
Additionally, the UK aspires to join the list of countries granted visa-free access by China, which currently includes 48 nations such as France, Germany, and Australia. This initiative would allow British citizens to travel for short-term business engagements, exchanges, or leisure without the need for a visa.
The UK Treasury, Department for Business and Trade, and FCA did not respond to inquiries for comment regarding these developments.