China and the United Kingdom have decided to speed up a joint feasibility study aimed at establishing a bilateral services trade agreement, a move that could significantly enhance collaboration in high-value service sectors. This decision comes as both nations look to bolster economic ties amid ongoing global trade challenges.
In a recent meeting of the China-UK Joint Economic and Trade Commission held in London, Chinese Commerce Minister Wang Wentao expressed a strong desire for increased investments from UK businesses. He also urged the UK to maintain a fair and non-discriminatory environment for Chinese companies operating there. Both countries reiterated their support for a rules-based global trading system, underscoring the importance of the World Trade Organization in facilitating this framework.
UK Business and Trade Secretary Peter Kyle emphasized the growing cooperation in services as a crucial component of the bilateral relationship. He pointed out that the rapid growth of China’s services sector presents substantial opportunities for British enterprises and confirmed the UK’s readiness to deepen cooperation through the bilateral services partnership and the ongoing trade agreement study.
During the discussions, China also expressed concerns over the UK’s new steel import restrictions and urged the UK to amend these measures to align with international trade standards. Experts suggest that the proposed services trade agreement could open up new avenues in various sectors, including finance, banking, education, professional services, skills training, and creative industries.
Meanwhile, merchandise trade between China and the UK has shown resilience, 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 strengthening economic relations between the two countries despite broader trade uncertainties.
