Prime Minister Keir Starmer travels to China this Tuesday to discuss trade and investment, a visit that comes amid significant economic imbalances and shifting diplomatic pressures. The primary driver for the UK side appears to be the widening trade gap between the two nations. Data from January to November 2025 shows that China exported $76.8 billion worth of goods to the United Kingdom, while British exports to China totaled $17 billion during the same period.
This creates a trade deficit of roughly $60 billion. The composition of this trade highlights the UK's reliance on Chinese manufacturing for consumer technology and transport, specifically cars, telephones, and computers, which accounted for approximately 20% of total imports from China. In contrast, the UK’s export volume is significantly lower, with cars and crude petroleum being the primary contributors.
The timing of the visit is notable given the United States' current stance on its allies' trade policies. The negotiations are under scrutiny following recent comments from Donald Trump, who threatened to impose 100% tariffs on Canada if Prime Minister Mark Carney finalized a trade deal with Beijing. This precedent suggests the UK is attempting to balance the need to address its trade deficit with China with the risk of retaliatory tariffs from the US.
Trade Data Source:Â https://oec.world/en/profile/country/chn?selector335id=HS4&selector303id=Year&selector1878id=percentage&selector320id=2
News source:Â https://www.nytimes.com/2026/01/27/world/europe/uk-china-visit-starmer-trade.html
Source: RobinWheeliams