UK's Starmer Faces Bleak Prospects for Trade Deals with China, Analysts Warn
Keir Starmer's highly anticipated visit to China this week has been touted as an effort to revive diplomatic relations and secure new trade deals. However, experts warn that the UK prime minister's chances of landing meaningful agreements are slim.
Eight years after Theresa May's ill-fated "ambitious" post-Brexit deal with China was shelved, Starmer is set to embark on a trip that will focus on joint trade and investment efforts. The visit comes as China continues to assert its dominance in global trade, with the country boasting a record trillion-dollar global trade surplus in 2025.
Despite Starmer's assurances that China presents significant opportunities for British businesses, analysts believe the UK is unlikely to reap substantial economic benefits from its dealings with Beijing. "The bar for a successful Starmer trip is very low," says Sam Goodman, senior policy director at the China Strategic Risks Institute. "It could amount to a bunch of memoranda of understanding on financial services and maybe a promise of a greenfield investment in the car industry."
Goodman's assessment is echoed by Andrew Small, a former European Commission adviser who now works for the European Council on Foreign Relations. "China is unlikely to deliver the economic boost Labour wants because margins have perished in an overheated economy," he notes.
Small also warns that China's trade policies are becoming increasingly complex and unpredictable. The country has shown a willingness to use trade as a tool of foreign policy, imposing import bans and anti-competition investigations on foreign companies. "Foreign businesses are seen as fair game and a useful pressure point for China in its relationship with foreign countries," he says.
One notable example of this is China's recent export ban on Nexperia chips, which nearly brought car production to a halt globally. Goodman notes that such tactics demonstrate the double-edged nature of doing business with China.
As Starmer prepares to meet with Chinese leaders and promote British trade interests, analysts are cautioning that the UK must be aware of these risks. "Xi Jinping's sense of power has only grown over the past year," Small observes. "He can now introduce export restrictions without pushback and feel emboldened to use trade as a weapon pretty openly."
In an unpublished paper for the Centre for Statecraft and National Security at King's College London, Goodman outlines eight tactics deployed by China to weaponize its trading relationship. These include import bans, anti-competition investigations, and strategic uses of export restrictions.
As Starmer embarks on his historic visit to China, it remains to be seen whether he can secure the meaningful trade deals that Labour hopes for. Given the complexities and risks involved, many experts believe the UK's prospects are bleak.
Keir Starmer's highly anticipated visit to China this week has been touted as an effort to revive diplomatic relations and secure new trade deals. However, experts warn that the UK prime minister's chances of landing meaningful agreements are slim.
Eight years after Theresa May's ill-fated "ambitious" post-Brexit deal with China was shelved, Starmer is set to embark on a trip that will focus on joint trade and investment efforts. The visit comes as China continues to assert its dominance in global trade, with the country boasting a record trillion-dollar global trade surplus in 2025.
Despite Starmer's assurances that China presents significant opportunities for British businesses, analysts believe the UK is unlikely to reap substantial economic benefits from its dealings with Beijing. "The bar for a successful Starmer trip is very low," says Sam Goodman, senior policy director at the China Strategic Risks Institute. "It could amount to a bunch of memoranda of understanding on financial services and maybe a promise of a greenfield investment in the car industry."
Goodman's assessment is echoed by Andrew Small, a former European Commission adviser who now works for the European Council on Foreign Relations. "China is unlikely to deliver the economic boost Labour wants because margins have perished in an overheated economy," he notes.
Small also warns that China's trade policies are becoming increasingly complex and unpredictable. The country has shown a willingness to use trade as a tool of foreign policy, imposing import bans and anti-competition investigations on foreign companies. "Foreign businesses are seen as fair game and a useful pressure point for China in its relationship with foreign countries," he says.
One notable example of this is China's recent export ban on Nexperia chips, which nearly brought car production to a halt globally. Goodman notes that such tactics demonstrate the double-edged nature of doing business with China.
As Starmer prepares to meet with Chinese leaders and promote British trade interests, analysts are cautioning that the UK must be aware of these risks. "Xi Jinping's sense of power has only grown over the past year," Small observes. "He can now introduce export restrictions without pushback and feel emboldened to use trade as a weapon pretty openly."
In an unpublished paper for the Centre for Statecraft and National Security at King's College London, Goodman outlines eight tactics deployed by China to weaponize its trading relationship. These include import bans, anti-competition investigations, and strategic uses of export restrictions.
As Starmer embarks on his historic visit to China, it remains to be seen whether he can secure the meaningful trade deals that Labour hopes for. Given the complexities and risks involved, many experts believe the UK's prospects are bleak.