In a significant move to bolster collaboration in high-value service industries, China and the United Kingdom have decided to fast-track a joint feasibility study on a bilateral services trade agreement. This step is aimed at enhancing economic connections between the two nations amid the prevailing uncertainties in global trade.
The decision emerged from the recent China-UK Joint Economic and Trade Commission meeting in London. At the meeting, Chinese Commerce Minister Wang Wentao expressed support for increased British investment and urged the UK to maintain a fair and non-discriminatory environment for Chinese businesses operating there. Both countries reiterated their commitment to upholding the rules-based global trading system, particularly through the World Trade Organization.
UK Business and Trade Secretary Peter Kyle emphasized that expanding cooperation in services is pivotal to the bilateral relationship. He noted that the growth of China’s services sector presents substantial opportunities for British companies. Kyle confirmed the UK’s eagerness to deepen partnership in services through the ongoing study of the trade agreement as well as the bilateral services partnership.
During the discussions, China also voiced concerns regarding the UK’s recent steel import restrictions, urging a revision to ensure compliance with international trade standards. These concerns highlight the ongoing need to address trade policy issues even as both countries pursue expanded cooperation.
Experts suggest that a prospective services trade agreement could open new doors in sectors such as finance, banking, education, professional services, skills training, and creative industries. Meanwhile, the trade of goods between China and the UK continues to flourish, with bilateral merchandise trade increasing by 6.5% year-on-year in the first five months of 2026.