In a significant move to enhance economic collaboration, China and the United Kingdom have decided to expedite a joint feasibility study on a potential bilateral services trade agreement. This initiative aims to strengthen cooperation in high-value service industries, even as global trade faces increasing uncertainties.
The decision emerged from the recent China-UK Joint Economic and Trade Commission meeting held in London. Chinese Commerce Minister Wang Wentao expressed a positive outlook towards increased investments from British enterprises and urged the UK to provide a fair, non-discriminatory environment for Chinese companies operating within its borders. Both nations reiterated their support for a rules-based global trading system, emphasizing their commitment through the World Trade Organization.
UK Business and Trade Secretary Peter Kyle underscored that enhanced cooperation in the services sector remains a cornerstone of the bilateral relationship. He pointed to the rapid growth of China’s services sector as a source of substantial opportunities for British businesses and affirmed the UK’s readiness to deepen ties through the proposed services partnership and the ongoing trade agreement study.
Meanwhile, China voiced concerns regarding the UK’s recent imposition of steel import restrictions, urging a reassessment to ensure compliance with international trade regulations. This issue remains a point of contention as both countries navigate their trade dynamics.
According to experts, the potential services trade agreement could open up new avenues in areas such as finance, banking, education, professional services, skills training, and creative industries. Despite these challenges, 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.