Is Trump pushing Europe closer to China? Starmer's Beijing visit next week, Reeves to accompany

UK Prime Minister Keir Starmer is all set to visit China next week with Finance Minister Rachel Reeves, as countries look to open business to Beijing amid volatility posed by US President Donald Trump’s decisive policies.

Among the goods Britain hopes to sell to China are financial services products such as pensions, insurance and wealth management services, luxury cars and clothing, and whisky.

While China has been prevented from investing in certain parts of the British economy, such as nuclear plants and core mobile networks, it has invested in renewable energy systems, infrastructure and real estate.

Signs of improving ties?

The trip was expected to be postponed if Beijing had decided that a lack of progress on approving China’s contentious plan to build what would be Europe’s largest embassy in London represented too significant a political setback for the leaders to meet.

But earlier this week, the British Parliament approved the building of the mega-embassy, rejecting objections from some politicians who said the new building would make it easier for China to conduct spying operations.

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China was Britain’s fourth-largest trading partner with trade totalling around 100 billion pounds in the 12 months to the end of the second quarter in 2025, according to government data.

Among those travelling with Starmer to China as part of the business delegation will be Brendan Nelson, the chairman of HSBC, Europe’s biggest bank, a source familiar with the plans told Reuters.

A revamped UK-China CEO Council is also set to be unveiled next week, with representatives from companies including AstraZeneca, HSBC and Jaguar Land Rover expected to participate.

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Countries move closer to China

Starmer’s trip to China follows Canadian Prime Minister Mark Carney’s visit earlier this month.

The Canadian leader hailed a “landmark deal” under a “new strategic partnership” with China, marking a turning point in years of diplomatic spats, tit-for-tat arrests, and tariff disputes.

Carney has sought to reduce his country’s reliance on the United States, its key economic partner and traditional ally, as President Donald Trump has aggressively raised tariffs on Canadian products.

“Canada and China have reached a preliminary but landmark trade agreement to remove trade barriers and reduce tariffs,” Carney told a news conference after meeting with Xi.

Chancellor Friedrich Merz is scheduled to visit China in February 2026, marking a critical moment in his “de-risking” strategy. In a deliberate break from tradition, Merz prioritised a high-profile trip to India earlier this month to signal a shift toward economic diversification.

His upcoming visit to Beijing is intended to stabilise relations with Germany’s largest trading partner and secure market access for German industry, particularly as global trade tensions rise.