Chinese Vice-Premier He Lifeng has called for closer cooperation with Britain in areas including financial services, biomedicine and artificial intelligence, as both sides seek to repair ties after prolonged tensions.
Mutually beneficial economic relations could act as a "stabilising anchor" in the relationship, the vice-premier told the 11th China-UK Economic and Financial Dialogue in Beijing.
He co-hosted the event with British finance minister Rachel Reeves, as the dialogue mechanism was revived after nearly six years.
Reeves, who arrived in Beijing for a two-day trip on Saturday, is the most senior British government official to visit China since Foreign Secretary David Lammy in October.
After years of friction over issues including security and China's human rights record, relations have begun to improve since the Labour government came to power in London last year. Both sides have also been struggling to grow their respective economies and are bracing for more uncertainties as Donald Trump returns as US president.
The annual economic and financial dialogue, launched in 2008, had been on hold since 2019 due to the Covid-19 pandemic and strained ties over issues including Hong Kong, a former British colony.
"China and the United Kingdom enjoy complementary economies and extensive shared interests that far outweigh their differences," Vice-Premier He said in opening Saturday's dialogue.
"As key trading partners, China and the UK have vast potential for collaboration. Both sides should align their development strategies, expand trade and investment, and deepen cooperation in areas such as clean energy, financial services, green economy, biotechnology, and artificial intelligence," he said.
According to Reeves, whose formal title is chancellor of the exchequer, China is Britain's fourth biggest trading partner.
Chinese customs data shows bilateral trade rose 0.5% year on year to US$89.3 billion in the 11 months to November 2024.
He also said China was willing to work with Britain to create a "fair, just and non-discriminatory" business environment. Britain is among foreign countries to have long called for more market access and a level playing field in China.
He also played up China's growth prospects, as a potential "biggest engine" for the global economy, while Reeves said British expertise in finance could "complement China's dynamic market".
Britain was the first of the Group of 7 developed nations to join the Beijing-headquartered Asian Infrastructure Investment Bank set up in 2015.
London is also one of the major markets for offshore yuan trading, after HSBC issued the first yuan-denominated bond in the city in 2012. Seven years later, the Shanghai-London Stock Connect was launched.
"Today we aim to build on this and enhance cooperation in areas such as sustainable finance, capital markets, connectivity, pensions and regulatory alignment," Reeves said.
"Investment is a cornerstone of economic development," she said. "It is important to prevent economic links weakening our national security and economic resilience".
According to Agence France-Presse, Reeves said that London was a "natural home for China's financial services firms and … clients raising capital, and a launch pad for Chinese firms seeking to build a global footprint".
"However, as we continue to strengthen our financial relationship, it is crucial that we work together even closer on regulatory cooperation," she was quoted as saying.
While finding common ground on trade and investment, Britain also wanted to "be candid about our differences and upholding national security as the first duty of this government," she said earlier, in a statement before the talks.
Meeting Chinese President Xi Jinping on the sidelines of the Group of 20 summit in Brazil in November, British Prime Minister Keir Starmer called for a "consistent, durable and respectful" relationship, despite differences on human rights and sanctions on lawmakers.
Vice-President Han Zheng said China was willing to increase openness and mutual trust with Britain, as he met Reeves separately on Saturday.
Han said strengthening economic and financial cooperation was of great significance to both countries, according to state news agency Xinhua.
The Xinhua report also said a series of deals were reached during the talks, but did not elaborate.
According to Germany's Deutsche Presse-Agentur, Reeves confirmed agreements worth £600 million (US$732 million) to the British economy over the next five years.
"Re-engagement [with China] already sets us on course to deliver up to £1 billion of value for the UK economy," she was quoted as saying.
Mutually beneficial economic relations could act as a "stabilising anchor" in the relationship, the vice-premier told the 11th China-UK Economic and Financial Dialogue in Beijing.
He co-hosted the event with British finance minister Rachel Reeves, as the dialogue mechanism was revived after nearly six years.
Reeves, who arrived in Beijing for a two-day trip on Saturday, is the most senior British government official to visit China since Foreign Secretary David Lammy in October.
After years of friction over issues including security and China's human rights record, relations have begun to improve since the Labour government came to power in London last year. Both sides have also been struggling to grow their respective economies and are bracing for more uncertainties as Donald Trump returns as US president.
The annual economic and financial dialogue, launched in 2008, had been on hold since 2019 due to the Covid-19 pandemic and strained ties over issues including Hong Kong, a former British colony.
"China and the United Kingdom enjoy complementary economies and extensive shared interests that far outweigh their differences," Vice-Premier He said in opening Saturday's dialogue.
"As key trading partners, China and the UK have vast potential for collaboration. Both sides should align their development strategies, expand trade and investment, and deepen cooperation in areas such as clean energy, financial services, green economy, biotechnology, and artificial intelligence," he said.
According to Reeves, whose formal title is chancellor of the exchequer, China is Britain's fourth biggest trading partner.
Chinese customs data shows bilateral trade rose 0.5% year on year to US$89.3 billion in the 11 months to November 2024.
He also said China was willing to work with Britain to create a "fair, just and non-discriminatory" business environment. Britain is among foreign countries to have long called for more market access and a level playing field in China.
He also played up China's growth prospects, as a potential "biggest engine" for the global economy, while Reeves said British expertise in finance could "complement China's dynamic market".
Britain was the first of the Group of 7 developed nations to join the Beijing-headquartered Asian Infrastructure Investment Bank set up in 2015.
London is also one of the major markets for offshore yuan trading, after HSBC issued the first yuan-denominated bond in the city in 2012. Seven years later, the Shanghai-London Stock Connect was launched.
"Today we aim to build on this and enhance cooperation in areas such as sustainable finance, capital markets, connectivity, pensions and regulatory alignment," Reeves said.
"Investment is a cornerstone of economic development," she said. "It is important to prevent economic links weakening our national security and economic resilience".
According to Agence France-Presse, Reeves said that London was a "natural home for China's financial services firms and … clients raising capital, and a launch pad for Chinese firms seeking to build a global footprint".
"However, as we continue to strengthen our financial relationship, it is crucial that we work together even closer on regulatory cooperation," she was quoted as saying.
While finding common ground on trade and investment, Britain also wanted to "be candid about our differences and upholding national security as the first duty of this government," she said earlier, in a statement before the talks.
Meeting Chinese President Xi Jinping on the sidelines of the Group of 20 summit in Brazil in November, British Prime Minister Keir Starmer called for a "consistent, durable and respectful" relationship, despite differences on human rights and sanctions on lawmakers.
Vice-President Han Zheng said China was willing to increase openness and mutual trust with Britain, as he met Reeves separately on Saturday.
Han said strengthening economic and financial cooperation was of great significance to both countries, according to state news agency Xinhua.
The Xinhua report also said a series of deals were reached during the talks, but did not elaborate.
According to Germany's Deutsche Presse-Agentur, Reeves confirmed agreements worth £600 million (US$732 million) to the British economy over the next five years.
"Re-engagement [with China] already sets us on course to deliver up to £1 billion of value for the UK economy," she was quoted as saying.
