Trade Secretary Peter Kyle addressed a gathering of business leaders at the UK session of the 'Big Market for All: Export to China' event on 1st July 2026. His speech underscored the UK Government's commitment to strengthening economic ties with China, ahead of the anticipated UK-China Joint Economic and Trade Committee (JETCO) meeting. This marks the third significant engagement between the two governments in less than a year, signalling a concerted effort to revitalise a relationship described as having been 'dormant for far too long'.
Mr Kyle highlighted the tangible successes stemming from recent high-level interactions, including a JETCO meeting in Beijing last September and the Prime Minister's 'historic visit' to China in January – the first such visit in eight years. These discussions, he noted, resulted in substantial economic gains for the UK, unlocking £2.2 billion in new export deals and an additional £2.3 billion in market access wins projected over the next five years. Furthermore, the visits facilitated the introduction of visa-free travel, simplifying business and professional exchanges, and a crucial reduction in tariffs on UK whisky exports, dropping from 10 per cent to 5 per cent – a significant boost for an iconic British industry.
Beyond the immediate economic benefits, the Trade Secretary emphasised the broader strategic importance of these dialogues. He stated that in an 'unstable geopolitical climate', open communication is paramount for understanding and collaboration, ultimately fostering stability for both countries and their respective business communities. Tomorrow's JETCO meeting is set to build on this foundation, focusing on the implementation of Memoranda of Understanding (MOUs) signed in January and exploring further avenues for enhancing the trading relationship.
Mr Kyle pointed to a strong alignment between the UK's Industrial Strategy and China's five-year plan, identifying overlapping sectors that present mutual opportunities. He cited examples of British firms already capitalising on this, including Silverstream Technologies, which has partnered with 13 Chinese shipyards for its net-zero lubrication technology, and Anemoi Marine Technologies, securing £28 million in export value through sales of its Flettnor Rotor Sails. Collaborations extend to the sports sector, with World Snooker agreeing a £15 million five-year deal in China, and life sciences, where companies like Cultech have achieved £90 million in exports, creating jobs in Port Talbot, Wales.
A primary focus for future growth, according to Mr Kyle, is the services sector. While services constitute 59% of the UK's global exports, they currently account for only 42% of exports to China. The Trade Secretary expressed ambition to significantly increase this proportion, positioning British professional services as the preferred choice for Chinese businesses looking to expand globally. The UK Government's aim is to establish a 'services superhighway' between London and Beijing, though acknowledging that building such a robust relationship will require sustained effort and time.
The Foreign, Commonwealth & Development Office (FCDO) currently advises British nationals travelling to China to check local laws and customs, and to be aware of potential restrictions on access to certain areas or websites. The emphasis on trade and professional exchange suggests that the government views a stable economic relationship as beneficial for both nations, despite existing geopolitical differences.