China and UK Finalize Financial and Commercial Cooperation

During a four-day visit to China in late January 2026, UK Prime Minister Keir Starmer and Chinese leaders Xi Jinping and Li Qiang agreed on a series of initiatives aimed at deepening financial and commercial cooperation between the two countries. The visit included the inaugural meeting of the UK-China Financial Working Group, bringing together senior officials and regulators from both governments alongside representatives from over 50 UK companies, including 11 financial and professional services firms.

The agreements aim to strengthen London’s position as a global financial hub while facilitating trade and investment. The Bank of China’s London Branch was designated as the UK’s second renminbi clearing bank, broadening services for British businesses trading with China. Discussions also covered regulatory developments, financial stability, and the expansion of innovative financing mechanisms, including renminbi-denominated biodiversity bonds.

Starmer’s visit also yielded substantial commercial results, with agreements supporting approximately USD 3 billion in exports. Key sectors included banking, pharmaceuticals, automotive, and consumer goods, with companies such as Pop Mart, JD.com, and CATL announcing major partnerships and expansions. Measures to reduce tariffs are expected to further support British exporters.

The UK-China Financial Working Group will serve as a permanent platform for structured dialogue on financial policy, reporting directly to the Chancellor of the Exchequer and China’s Vice Premier. The framework complements the broader economic and commercial engagement, ensuring predictable conditions for UK firms and supporting approximately 370,000 British jobs connected to trade with China.

By combining financial, regulatory, and commercial cooperation, the agreements provide a foundation for sustained two-way investment, enhanced market access, and stronger economic ties. The UK’s status as one of China’s top trading partners in Europe is expected to be reinforced through these initiatives, highlighting opportunities for continued growth across multiple sectors.