In a move aimed at bolstering economic collaboration, China and the United Kingdom have decided to expedite a joint feasibility study on a potential bilateral services trade agreement. This development could pave the way for enhanced cooperation in high-value service industries, a crucial step forward amidst prevailing global trade uncertainties.
The decision emerged from the recent China-UK Joint Economic and Trade Commission meeting held in London. During the gathering, Chinese Commerce Minister Wang Wentao expressed a welcoming stance towards increased British investment in China. He also urged the UK to maintain a fair and non-discriminatory environment for Chinese companies doing business in Britain. Both nations reiterated their support for the rules-based international trading system, emphasizing their commitment to the World Trade Organization’s framework.
UK Business and Trade Secretary Peter Kyle underscored the importance of expanding services cooperation as a fundamental aspect of bilateral relations. He pointed out that China’s rapidly growing services sector presents substantial opportunities for British companies. Kyle affirmed the UK’s readiness to deepen its partnership through the ongoing trade agreement study and the broader bilateral services collaboration.
However, the discussions were not without concerns. China raised issues regarding the UK’s recent restrictions on steel imports, calling on Britain to adjust these measures to align with international trade standards.
Experts suggest that the proposed services trade agreement could open up new prospects in various sectors, including finance, banking, education, professional services, skills training, and creative industries. Meanwhile, the trade of goods between the two nations continues to thrive, with a 6.5% increase in bilateral merchandise trade recorded year-on-year over the first five months of 2026.