In a move poised to enhance economic cooperation, China and the United Kingdom have agreed to expedite a joint feasibility study on a bilateral services trade agreement. This development aims to bolster collaboration in high-value service sectors, despite prevailing global trade uncertainties.
The decision emerged from the recent meeting of the China-UK Joint Economic and Trade Commission held in London. Chinese Commerce Minister Wang Wentao expressed a warm welcome to increased investments from British enterprises, urging the UK to maintain a fair and non-discriminatory business environment for Chinese companies operating within its borders. Both nations reiterated their dedication to upholding the rules-based global trading system, as governed by the World Trade Organization.
UK Business and Trade Secretary Peter Kyle emphasized the critical role of services in the bilateral relationship. With China’s services sector rapidly expanding, Kyle sees substantial opportunities for British businesses. He confirmed the UK’s eagerness to deepen cooperation through the burgeoning bilateral services partnership and the ongoing study of the trade agreement.
China, however, expressed concerns regarding the UK’s recent steel import restrictions, urging Britain to amend these measures to align with international trade regulations. This issue underscores the complexities in the trade relationship that the proposed services trade agreement aims to navigate.
Experts suggest that the agreement could unlock new avenues in various sectors, including finance, banking, education, professional services, skills training, and the creative industries. Meanwhile, merchandise trade between China and the UK continues to flourish, with bilateral goods trade experiencing a 6.5% increase year-on-year during the first five months of 2026.