As dialogue resumes, will warmer ties increase China-UK economic engagement?

“The main factor now is a clear-sighted recognition in the UK that the economic situation is perilous, and that with China, there are clearly unexplored opportunities that we have to at least look at, even if we don’t take them,” said Kerry Brown, a professor of Chinese studies and director of the Lau China Institute at King’s College, London.

“China remains a minuscule investor in Britain, but with shocks like the success of DeepSeek, it is clear that Britain needs to think hard about the opportunity costs that engagement with China bring.”

Foreign Minister Wang Yi was scheduled to hold talks with British counterpart David Lammy in London on Thursday at the first UK-China Strategic Dialogue meeting since July 2018.

This follows the resumption of the UK-China Economic and Financial Dialogue in Beijing last month, when British Chancellor of the Exchequer Rachel Reeves and Chinese Vice-Premier He Lifeng reached deals worth £600 million (US$746.5 million) to Britain.