UK seeks greater business access in China as Peter Kyle resumes talks
He will also co-chair the first Industrial Cooperation Dialogue between the two countries since 2022, aiming to promote cooperation on industrial decarbonisation and the digital economy
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[LONDON] UK Business Secretary Peter Kyle is set to push China for greater market access to British businesses, as he attends the first high-level trade discussions between the two countries since 2018.
Kyle, who replaced Jonathan Reynolds in a Cabinet reshuffle on Friday (Sep 5), will land in Beijing on Wednesday, according to a statement from the Department for Business and Trade (DBT). He’s looking to conclude a trade package which will make it easier for British carmakers to export to China, remove barriers on items such as cattle hides, sheep skins and genetic material for pig breeding, and help UK education firms get their qualifications and services recognised in China.
The resumption of the UK-China Joint Economic and Trade Commission talks after a seven-year hiatus amid rising tensions between the two nations comes as Labour Prime Minister Keir Starmer is pushing to boost economic growth in Britain, partly by increasing trade opportunities. The package of market access alterations Kyle is pursuing could be worth more than £1 billion (S$1.7 billion) to UK companies, according to his department.
Former Prime Minister Boris Johnson suspended the economic dialogue following China’s crackdown on pro-democracy protesters in Hong Kong in 2019. But while the Conservatives tried to distance the UK from China, banning companies such as Huawei from infrastructure contracts over fears of spying and worries about economic security, Starmer is trying to cautiously improve relations. DBT said that it was pursuing a “pragmatic, careful and confident relationship” with the Asian super-power, which is forecast to contribute 23 per cent of global growth between 2023 and 2050.
The visit was planned before Starmer’s Cabinet overhaul, when Kyle was promoted from his previous post as science and innovation secretary. The minister, who is arriving in China straight from a visit to Washington, where he met with senior White House advisers, will need to balance the UK’s relationship with China against its US ties. That’s because US President Donald Trump has been clear that he wishes to see western allies distance themselves from Beijing.
“Serious and strategic engagement with the world’s foremost economic players is what will deliver for working people and businesses across the UK,” Kyle said. “More discussions and direct engagement with China will ensure trade between us can flourish, strengthen our national security, and create space to raise concerns constructively where needed.”
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According to DBT figures, nearly £2 billion of exports to China were supported by the UK government in the last financial year, including a broadcast deal signed by football’s Premier League with China Mobile-owned streaming platform Migu, a partnership between Oxford University Press and the National Library of China, and a strategic agreement signed by health sciences company Cultech Group to sell products on the Chinese market.
Kyle intends to raise human rights and business competition concerns during his meetings with Chinese peers, according to his department. He will also co-chair the first Industrial Cooperation Dialogue between the two countries since 2022, aiming to promote cooperation on industrial decarbonisation and the digital economy. BLOOMBERG
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