China and the United Kingdom are set to fast-track a joint feasibility study for a bilateral services trade agreement, marking a pivotal move to enhance cooperation in high-value service industries. This development aims to bolster economic relations amidst the uncertainties prevailing in global trade.
In a recent meeting of the China-UK Joint Economic and Trade Commission held in London, Chinese Commerce Minister Wang Wentao emphasized the significance of increased British investments in China. He urged the UK to maintain a fair and non-discriminatory environment for Chinese companies operating within its borders. Both nations reiterated their dedication to upholding the rules-based global trading system, particularly through the World Trade Organization.
UK Business and Trade Secretary Peter Kyle underscored the importance of expanding cooperation in services as a central component of the two countries’ bilateral ties. He noted that the rapid growth of China’s services sector presents significant opportunities for British businesses and expressed the UK’s readiness to enhance collaboration through both the bilateral services partnership and the ongoing trade agreement study.
During the discussions, China also expressed concerns over the UK’s recent steel import restrictions, urging a revision of these measures to ensure they align with international trade regulations. Experts suggest that the proposed services trade agreement could pave the way for new opportunities in areas such as finance, banking, education, professional services, skills training, and creative industries.
Meanwhile, merchandise trade between China and the UK has been on an upward trajectory, with bilateral goods trade increasing by 6.5% year-on-year in the first five months of 2026. This growth underscores the potential for further economic collaboration between the two nations.