In his first few days in post, new Secretary of State for Business and Trade Peter Kyle will head to Beijing to chair the UK-China Joint Economic and Trade Commission (JETCO), as Britain holds formal trade talks with China in seven years. Kyle will be looking to secure any “export wins” he can – in order to take a step in the direction of the Government’s cross-departmental North Star: growth.
According to Department for Business and Trade, the visit will confirm deals worth over £1 billion across five years, building on nearly £2 billion in export wins to China in the last financial year.
One concern for British negotiators will be balancing the dual priorities of economic opportunity and security, with a particular concern to protect UK businesses’ intellectual property from potential misuseA recurring challenge in UK–China trade relations has been the issue of intellectual property (IP) theft and enforcement. Successive UK governments have highlighted concerns about the protection of British businesses’ innovations, with companies citing risks around counterfeiting, technology transfer, and weak enforcement of existing agreements.
“The new Business and Trade Secretary’s visit to China puts the UK at the top table of global trade discussions. The UK currently has the fastest growing economy in the G7, with a rapidly growing AI and technology sector and it is right for the Peter Kyle to be straining every sinew to open trade opportunities for UK businesses in China. Several of our members have joined trade visits and highlighted the opportunities that a ‘business-like’ relationship could bring with China. Of course, the Secretary of State needs to set out our red lines on areas like security and IP protection, but we talking is better than mud slinging and I am confident the Secretary of State will use his diplomatic abilities to open doors for economic growth to benefit people across the UK”
– Ben Howlett, Chief Executive of Curia
Alongside JETCO, the Secretary of State will also co-chair the first Industrial Cooperation Dialogue since 2022, with discussions set to focus on industrial decarbonisation and the digital economy. British businesses joining the delegation are expected to finalise new market access wins, including in professional services and advanced manufacturing.
The government has said the approach will balance economic opportunity with security considerations, describing the relaunch of talks as “cooperating where we can and challenging where we must.” With China forecast to contribute 23 per cent of global growth between 2023 and 2050, UK firms will be seeking to expand into one of the world’s most important markets.
