In its eleventh edition, the CBBC Trade Tracker, released in June 2025, paints an optimistic picture of UK-China trade relations, underscoring the resilience and dynamic nature of this vital economic partnership. In 2024, a year marked by global economic turbulence and shifting geopolitical currents, UK goods exports to China rose by 1% to £21.1 billion, reversing a 1.6% decline from 2023. This modest but significant growth signals a renewed momentum in bilateral trade, driven by diverse regional contributions from across the UK’s regions and a deepening of commercial ties with the world’s second-largest economy. With China, including Hong Kong, standing as the UK’s third-largest trading partner and fifth-largest export market, the report highlights the critical role this relationship plays in bolstering British prosperity.

The CBBC’s report, drawing on HM Revenue and Customs (HMRC) data, offers a granular view of how UK regions and devolved administrations have navigated the complexities of the Chinese market in 2024. Among the standout performers, the East Midlands, which solidified its position as the UK’s largest exporter to China with £3.5 billion in goods, a 2.8% increase from the previous year. The region’s dominance is largely attributed to its robust trade in power-generating machinery and equipment, which rose by 1.3% to £2.6 billion, accounting for the lion’s share of its exports. Notably, the East Midlands remains the only UK region to run a trade surplus with China, with exports to Hong Kong comprising an impressive 84% of its total trade with the country. This underscores the region’s strategic importance as a hub for high-value manufacturing and its ability to capitalise on demand in both Mainland China and Hong Kong.

Hot on the heels of the East Midlands, the West Midlands emerged as the UK’s second-largest exporter to China, with goods exports edging up by 0.5% to £3.21 billion. The region’s trade is anchored by road vehicles, including premium cars and automotive components, which, despite a marginal 1.6% dip to £2.15 billion, remain the cornerstone of its exports. A notable bright spot was the 36.8% surge in power generating equipment exports to £287 million, reflecting growing Chinese demand for advanced energy technologies. The West Midlands’ contribution to UK-China trade accounted for 1.65% of its regional GDP, the second-highest share among UK regions, highlighting its pivotal role in sustaining national economic growth.

London, with £3 billion in exports, maintained its position as a key player in UK-China trade, despite a 4.8% decline from 2023, a marked improvement from the 25.5% drop the previous year. The capital’s trade profile is distinctive, with miscellaneous manufactured articles, such as luxury cosmetics and designer goods, leading the way, though these fell by 13% due to subdued consumer sentiment in China. London’s unique position is further evidenced by China ranking as its third-largest export market, the only UK region where this is the case, and its prominence in apparel and optical goods exports. The presence of major energy firms headquartered in the capital also drives significant petroleum exports, though these are more reflective of corporate activity than physical trade.

The North West of England also shone brightly, with exports to China climbing by 7.6% to £2.15 billion, marking the third-fastest growth rate among UK regions. This growth was underpinned by steady demand for road vehicles, including electric vehicles and components, as well as strong performance in agri-food exports such as cereals and animal feed. The region’s success in these categories aligns with China’s increasing focus on food security, positioning the North West as a critical supplier in this strategic sector. Meanwhile, the South West of England celebrated its fourth consecutive year of export growth, with a 3.5% increase to £1.7 billion, overtaking the South East to become the UK’s fifth-largest exporter to China. The region’s strength lies in ‘other transport equipment,’ including aircraft parts and luxury yachts, as well as scientific instruments like avionics and radar systems, which saw robust demand.

Regional Stars: North East and Scotland Surge Ahead

Among the most striking stories of 2024 is the remarkable export growth from England’s North East, which soared by an impressive 45.9% to £620.6 million, the fastest growth rate of any UK region. This surge was driven by power-generating machinery and equipment, likely including turbines and wind energy technologies, alongside significant gains in non-ferrous metals (up 174%) and medicinal and pharmaceutical products (up 138%). Despite being the UK’s second-smallest exporter to China, the North East’s leadership in niche categories like timber and organic chemicals underscores its outsized impact on UK-China trade.

Scotland, too, delivered a standout performance, with goods exports surging by 32.6% to £1.47 billion, the second-highest growth rate among UK regions. A key driver was the meteoric rise of petroleum exports, which leapt from negligible levels to £407.5 million, making Scotland the only UK region with oil as its leading export to China. Equally impressive was the 128.9% increase in seafood exports, reaching £75.3 million, a trend likely fuelled by China’s booming cold chain logistics sector. While beverage exports, primarily whisky, dipped by 32.7% amid China’s reduced luxury spending, Scotland’s dominance in leather goods and beverages highlights its diverse export portfolio.

Diverse Strengths Across the UK

The East of England also contributed to the positive narrative, with exports to China rising by 3.5% to £1.39 billion, reversing a three-year decline. Seven out of its eight top export categories recorded growth, with medicinal and pharmaceutical products remaining the region’s flagship export at £367.5 million, despite a slight 2.9% dip. The East’s position as the UK’s largest exporter of pharmaceuticals, meat and crude rubber underscores its critical role in meeting China’s demand for high-quality goods.

While not all regions saw growth, the overall picture is one of resilience and opportunity. Seven of the UK’s twelve regions recorded export increases in 2024, up from just four in 2023, reflecting a broadening of engagement with the Chinese market. Even regions like Wales and Northern Ireland, which saw declines of 15.2% and 14.7% respectively, showed pockets of strength, Wales in transport equipment and Northern Ireland in pharmaceuticals. The South East, despite a 12.4% drop to £1.47 billion, retained its leadership in pulp and waste paper and inorganic chemicals, while Yorkshire and the Humber’s modest 4.7% decline was offset by gains in dairy and egg exports.

The CBBC’s Trade Tracker highlights the complementary nature of British heritage goods and specialised industrial products, finding a ready market in China’s sophisticated economy. As Peter Burnett, CEO of CBBC, notes in the foreword, the improved engagement by the Labour government in 2024, marked by high-level ministerial visits, has fostered a more constructive dialogue and boosted business sentiment. Despite global challenges, including US tariffs and China’s domestic economic pressures, the UK’s ability to grow civilian goods trade unimpeded offers a pathway for further expansion.

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In a surprising twist, the United States and China have decided to cool down their heated trade battle, agreeing to cut tariffs for the next three months. This move comes after months of back-and-forth in which both countries slapped hefty taxes on each other’s goods, causing worry about empty shop shelves and rising prices. According to a report from the Times, the US will now lower its tariffs on Chinese products to 30 per cent, while China will reduce tariffs on American goods to 10 per cent.

The trade war kicked off when US President Donald Trump ramped up tariffs on Chinese imports to a staggering 145 per cent. China hit back hard, imposing 125 per cent duties on American products. This tit-for-tat escalation had everyone on edge, especially American farmers who rely on China to buy their corn and soybeans, and shop owners who feared they wouldn’t have enough stock to sell. The Times noted warnings that if the trade war didn’t ease up, American stores could face empty shelves, which would’ve been a nightmare for shoppers.

The announcement of the tariff cuts came after intense talks in Geneva, where US Treasury Secretary Scott Bessent met with Chinese Vice-Premier He Lifeng. Bessent described the discussions as making “substantial progress,” while He Lifeng called it an “important first step”. China’s Vice Commerce Minister, Li Chenggang, was equally optimistic, telling Bloomberg, “This will be good news for the world. As we say back in China, ‘If the dishes are delicious, the timing doesn’t matter.’” This suggests both sides are hopeful that this deal could pave the way for better relations.

The news sent ripples through global markets. The pound took a bit of a hit as the US dollar strengthened against other currencies, according to the Times. Investors seemed to breathe a sigh of relief, moving away from safe bets like gold, which dropped 2.8 per cent to $3,234.65 per troy ounce. Earlier this year, when the so-called “liberation day” tariffs were announced in April, gold had soared to a record high above $3,400 per troy ounce, as reported by Reuters. Stock markets, on the other hand, were buzzing with excitement. London’s FTSE 100 climbed 0.6 per cent, Germany’s market jumped 1.5 per cent, and France’s rose 1.3 per cent. In Asia, Hong Kong’s Hang Seng surged 3.4 per cent, and China’s SSE Composite gained 0.8 per cent, the Times reported.

President Trump, never one to shy away from sharing his thoughts, took to his social media platform, Truth Social, to call the talks a step toward a “total reset” in US-China relations. He described the negotiations as “friendly, but constructive,” and stressed the importance of opening up China to American businesses, saying, “We want to see, for the good of both China and the US, an opening up of China to American business,” as quoted by the Times. This isn’t the first time Trump has tried to strike a deal with China. Back in January 2020, he signed a trade agreement, but later accused China of not sticking to it and claimed his successor, Joe Biden, failed to enforce it, according to CNN. This led to Trump imposing a blanket 10 per cent tariff on all Chinese goods in February, prompting China to retaliate with tariffs on American agricultural products.

The Geneva talks marked the first face-to-face meeting between senior officials from the world’s two biggest economies since Trump introduced steep new tariffs last month, sparking a fierce response from Beijing. The escalating measures had American farmers and retailers on tenterhooks. Farmers, in particular, were worried about losing China as a major market for their crops, while retailers feared supply shortages. On NBC’s Meet the Press, Trump brushed off concerns about empty shelves, saying he didn’t think an 11-year-old girl “needs to have 30 dolls … I think they can have three dolls or four dolls because what we were doing with China was just unbelievable. We had a trade deficit of hundreds of billions of dollars with China,” as reported by the Times.

From Geneva, US Trade Representative Jamieson Greer explained the reasoning behind the tariffs, pointing to the massive $1.2 trillion trade deficit with China. “The president declared a national emergency and imposed tariffs,” Greer said in a statement quoted by the Times. “We’re confident that the deal we struck with our Chinese partners will help us to work toward resolving that national emergency.” This trade deficit has been a sore point for the US, with the Economic Policy Institute noting that it reflects an imbalance where the US imports far more from China than it exports, affecting jobs and industries.

The tariff cuts are a temporary measure, set to last 90 days, giving both sides a chance to keep talking and hopefully avoid another round of trade chaos. For now, the deal has brought a sense of calm to markets and businesses, but there’s still a long road ahead to sort out the deeper issues. The BBC reported that trade tensions between the US and China have been simmering for years, driven by concerns over fair trade practices, technology transfers, and market access. This latest agreement might not solve everything, but it’s a step toward easing the strain felt by farmers, shop owners, and consumers on both sides of the Pacific.

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The United States’ decision to shutter the US Agency for International Development (USAID) and the United Kingdom’s commitment to reduce foreign aid to 0.3% of gross national income (GNI) represent a significant retreat from their historic roles as global development leaders. For China, a nation that has transitioned from aid recipient to global powerhouse, these moves carry far-reaching consequences and have the potential to reshape the landscape of international assistance, influence and diplomacy, affecting not just Beijing but also Washington and London.

In the past, USAID played a notable role in China, particularly during the 1980s and 1990s when the country was opening its economy under Deng Xiaoping’s reforms. The US saw an opportunity to foster development and build bridges, directing funds toward agriculture, environmental protection, and public health. Annual allocations in the late 1990s and early 2000s typically ranged between $10 million and $20 million – modest sums compared to USAID’s global budget but significant in their focus. Projects included rural development in provinces like Yunnan and Guizhou, where training in modern farming techniques and water management aimed to alleviate poverty. Another key effort was the US-China Partnership for Environmental Law, active until around 2014, which trained legal professionals to address pollution amid China’s industrial boom. The Peace Corps, partly USAID-funded, also sent volunteers to teach English in Chinese universities until its exit in 2020, driven by rising US-China tensions.

The rationale of these initiatives was clear: influence and stability. USAID sought to promote democratic ideals while ensuring China’s growth aligned with US interests, especially during the tail end of the Cold War. But as China’s economy surged – its GDP overtaking Japan’s in 2010 to become the world’s second-largest – its reliance on foreign aid waned. By 2011, USAID had largely wound down direct assistance, reflecting China’s ability to fund its own development. Although USAID’s work in China has ceased, its regional efforts, like disaster relief in Asia, have indirectly supported stability on China’s doorstep.

The UK’s aid story differs but converges on a similar theme of retreat. Once a global leader with a commitment to spend 0.7% of GNI on aid – enshrined in law in 2015 – the UK slashed this to 0.5% in 2021 amid economic pressures and political shifts. Now, in 2025, it has pledged just 0.3%, a move driven by domestic priorities and a post-Brexit focus on self-reliance. Unlike the US, which is dismantling USAID entirely, the UK retains its aid framework but at a reduced scale. Historically, UK aid to China was smaller than USAID’s and phased out earlier, focusing on poverty reduction and education in the 1990s before ending direct bilateral aid in 2011. Today, its contributions are channelled through multilateral bodies such as the World Bank, with little direct impact on China.

The USAID shutdown and the UK’s cut to 0.3% of GNI don’t hit China with an immediate funding loss – Beijing hasn’t depended on either for years. Instead, they create a broader global shift that China could exploit. The US move slashes a $42 billion annual budget (2023 figures), while the UK’s reduction trims its aid from £14 billion in 2020 to roughly £5 billion based on current GNI estimates. This retreat leaves gaps that China, through its Belt and Road Initiative (BRI), is well-positioned to fill. The BRI, launched in 2013, has poured billions into infrastructure across Asia, Africa, and beyond. A Brookings report notes, “China’s spending on what USAID traditionally focuses on – ‘grants’, such as capacity building and humanitarian assistance – is less than 50% of its total foreign aid budget, at $3.29 billion (£2.55 billion) during 2013-2018,” highlighting its preference for strategic loans over handouts. As Western aid recedes, nations once reliant on USAID or UK support may turn to Beijing, boosting China’s hard power – its ability to shape outcomes through economic leverage.

Soft power, however, is less certain. USAID’s cultural legacy – English lessons, health clinics – carried a warmth that China’s state-driven projects often lack. The UK, too, wielded influence through education and governance schemes. With both countries stepping back, China might expand initiatives like Confucius Institutes to bridge this gap, though their top-down nature struggles to match the grassroots appeal of Western aid. Trade could also shift, with Chinese firms gaining contracts in regions like Southeast Asia, where BRI projects already outpace Western investment. This could mean more jobs for Chinese workers, while the US and UK lose aid-related roles. USAID’s 10,000 staff face redundancy and British NGOs are bracing for cuts, shrinking opportunities at home.

Diplomatically, the stakes are high. The US risks ceding ground to China, a fear voiced by US officials quoted in a recent Newsweek article: “[The USAID shutdown] has created vacuums of need all around the world, ceding influence and permitting China and Russia to seize those opportunities left behind.” The UK, aligning with this trend, may weaken its Commonwealth ties as poorer members seek Chinese loans. Ghana’s President, John Mahama, speaking at the Munich Security Conference in February 2025, said that the country had had to cut spending by $156 million because of Trump’s aid freeze, underscoring the ripple effects. For China, this is a chance to lead, but it must deliver without being seen as exploitative – a delicate balance given BRI’s mixed reputation.

The bigger picture is one of recalibration. The US, through the USAID shutdown, signals a focus on domestic challenges, potentially at the cost of its global moral clout. The UK’s 0.3% pledge reflects a similar inward turn, diluting its influence. China, meanwhile, gains economic sway but faces pressure to soften its image through cultural outreach. Jobs, trade, and diplomacy will evolve as Beijing fills gaps, yet the West’s retreat could leave it scrambling to reclaim lost leverage through other means – perhaps military ties or trade deals. For all three, the USAID shutdown and UK cuts mark a pivot point, reshaping a world where aid once bridged divides. How they adapt will define their roles for decades to come.

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Writing in The Guardian ahead of the visit, Miliband said: “The only way to respond to [the climate crisis] is with decisive action at home and abroad… climate action at home without pushing larger countries to do their fair share would not protect current and future generations. Emissions know no borders, and we will only protect our farmers, our pensioners and our children if we get other countries of the world to play their part.”

On Monday 17 March, Ed Miliband met with Chinese Vice Premier Ding Xuexiang in Beijing. The two sides agreed to enhance cooperation in jointly addressing climate change. Ding, also a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, noted that China is ready to work with the UK to earnestly implement the important consensus reached by the leaders of both countries, consolidate the momentum for improvement and development of bilateral ties, deepen cooperation in areas such as financial services, trade and investment and low-carbon development, and jointly address climate change to better benefit the people of both countries and the world.

Miliband and China’s National Energy Administrator Minister, Wang Hongzhi, also co-hosted the 8th China-UK Energy Dialogue in Beijing on 17 March. The two sides exchanged views on topics including clean energy technologies, energy transition, energy security and global energy governance. Following the dialogue, Miliband and Minister Wang signed a Memorandum of Understanding on the China-UK Clean Energy Partnership, which identifies priorities for collaboration, including power market reform, power grids, battery storage, offshore wind energy, carbon capture, utilisation and storage (CCUS), clean low-carbon and renewable hydrogen.

Earlier, on Saturday, 15 March, Miliband met with China’s Ecology and Environment Minister, Huang Runqiu, and held in-depth discussions on topics including cooperation in climate change. Minister Huang outlined China’s policies, actions, and achievements in combating climate change, expressing China’s willingness further to deepen policy dialogue and practical cooperation with the UK in areas such as carbon markets, climate investment and financing, and climate adaptation. He emphasised that such collaboration would contribute positively to global climate governance.

The Energy Secretary will refresh the 10-year-old UK Clean Energy Partnership with China – which will now provide clarity on areas where the UK government can securely collaborate with China on areas of mutual benefit – such as new emerging technologies, including hydrogen and carbon capture and storage. The UK will also share expertise on phasing out coal, having closed its last coal-fired power station last year.

Ed Miliband said:  

“We can only keep future generations safe from climate change if all major emitters act. It is simply an act of negligence to today’s and future generations not to engage China on how it can play its part in taking action on climate. 

That is why I will be meeting Chinese ministers for frank conversations about how both countries can fulfil the aims of the Paris Climate Agreement, to which both countries are signed up.  

Our Plan for Change and clean energy superpower mission is about energy security, lower bills, good jobs and growth for the British people. It is with this mission that we can also influence climate action on a global stage, fight for our way of life and keep our planet safe for our children and grandchildren.”

Coinciding with Miliband’s visit to China, CBBC, in partnership with the British Embassy and the British Chamber of Commerce in China, hosted the UK-China Clean Energy Reception in Beijing. The event brought together nearly 200 guests, including representatives from the UK government, Chinese companies and UK businesses, providing a valuable platform for business and government stakeholders to network and explore collaboration opportunities in the sector. 

CBBC’s Chief Executive Peter Burnett, who is visiting China, attended the event alongside Tom Simpson, CBBC’s Managing Director for China.

Speaking at the event, CBBC’s Chief Executive Peter Burnett said:

“There are important shared objectives between businesses in the UK and China, including tackling climate change, promoting sustainability, and developing clean, efficient, and safe energy solutions. For businesses, this dialogue is incredibly important. All successful businesses mitigate as much risk from their operations as they can. Managing climate-related risks has become an essential business objective, particularly as we have seen the significant impact of climate change worldwide. At CBBC, we will continue to prioritise this issue. Addressing climate change is not just necessary – it also supports economic growth, prosperity, and job creation.”

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Taking place at London’s No. 4 Hamilton Place, the UK-China Business Forum 2025 centred on the theme of ‘Partnering for Growth’, exploring UK-China partnerships and the opportunities for growth in both markets through export and investment.

The event attracted leading speakers representing the UK and Chinese governments, as well as HSBC, KPMG, BYD, Standard Chartered, Bank of China, University of Birmingham, Alibaba, Brand Finance and the UK’s National Innovation Centre for Ageing, amongst many others. Together, they took a deep dive and shared cross-industry insights into areas including healthcare, the Chinese consumer market, smart transport, and investment opportunities into both the UK and China. The day provided ample opportunity for attendees to network and mingle with like-minded peers as well as industry leaders, and was followed by CBBC’s Spring Reception.

The UK-China Business Forum 2025 kicked off with Welcoming Remarks & Opening Keynotes from Sir Sherard Cowper-Coles KCMG LVO, Chair, China-Britain Business Council and Senior Adviser, HSBC Holdings plc; Emma Reynolds MP, Economic Secretary to the Treasury and City Minister, HM Treasury; and Wang Qi, Chargé d’Affaires, Chinese Embassy. 

The first panel of the day, which was sponsored by Standard Chartered, explored China’s Role in an Evolving Global Economy, examining China’s position as a global player in the context of a new world order which presents a host of opportunities and challenges both across bilateral and third country relationships. The panel was hosted by Gordon Orr, Non-Executive Director of Swire Pacific, Meituan, Lenovo, Fidelity China Special Situations Investment Trust, and EQT AB, who was joined by speakers Fang Wenjian, Chairman of China Chamber of Commerce in the UK, General Manager of Bank of China London Branch, Becky Liu, Managing Director, Head, China Macro Strategy, Standard Chartered Bank (Hong Kong) Ltd, Trey McArver, Co-Founder of Trivium/China, and Dr Carwyn Morris, University Lecturer of Digital China at Leiden University, Netherlands. 

The second panel of the day, which was sponsored by Red Rock Renewables, examined China’s Role in the UK – Inward Investment Opportunities. The session highlighted opportunities for Chinese businesses to invest in the UK and support the UK government’s growth agenda, as well as the potential of partnerships that can support the UK’s ambitious Net Zero commitments and bring Chinese innovation and new technologies to partners in the UK. The panel was hosted by Huang Shan, Director & Senior Fellow, Caixin Insight. Speakers joining included: Joe Li, Head of China Desk, HSBC UK Commercial Banking; Natasha Luther-Jones, Partner, Global Co-Chair, Energy and Natural Resources Sector and International Head, Sustainability & ESG, DLA Piper; Yang Ming, CEO of Westwell Holdings (Hong Kong) Ltd; and John Dykes, Sales Deputy Director for UK, Ming Yang Smart Energy Group Limited.

Following the first two panels of the day, Simon Bisp, Head of Sales, BYD UK and Ireland, took part in a CEO Fireside Chat with CBBC’s Chief Executive, Peter Burnett OBE BBS. In this one-on-one discussion, Simon shared his views on the UK as a destination for BYD’s international growth, sharing cutting-edge industry insights with attendees.

Following lunch and networking, the day’s dedicated breakout sessions took place. 

The first breakout session of the day, Building Brand Loyalty and Cultural Relevance in the Chinese Consumer Market, was sponsored by TONG Global and explored the potential of collaborations between UK and Chinese brands and emerging key trends that will define the market going forward. The session was hosted by Celine Tang, Retail & E-commerce Sector Lead, China-Britain Business Council, with David Haigh, Chairman and CEO, Brand Finance Plc; Jack Porteous, Commercial Director, TONG Global; Kai-Chuan Chao, Commercial and Cultural Partnerships, East Asia Lead, The British Library; and Antoaneta Becker, Director, Consumer Economy, China-Britain Business Council joining as speakers. 

Taking place at the same time was a breakout session on How the UK’s Green Transition can leverage China’s industrial might. This session explored China’s renewable energy assets and how China and the UK can collaborate to realise the UK’s Net Zero targets. The panel was hosted by James Brodie, Regional Director, Scotland, Commercial Director, Industrial, China-Britain Business Council, who was joined by panellists Chong Ng, Associate Director – Applied Research, Offshore Renewable Energy Catapult; Alexander Grant, Partner, Pinsent Masons; and David Finnon, CTO, Red Rock Renewables. 

Following a short break, the next round of breakout sessions kicked off with Prevent, Optimise, Thrive: Global Health Innovation Across Borders, a session exploring the changes that an ageing population bring to healthcare. The panel explored innovations across the private sector and academia, addressing global health challenges, leveraging shared expertise in preventative care, digital health, and patient-centred approaches. The session was led by Elinor Greenhouse, Senior Adviser, Tech and Innovation, China-Britain Business Council, who was joined by Sarah Nolan, Head of Global Programmes, UK’s National Innovation Centre for Ageing (NICA); Xiaoming Gao (Gavin), CEO, Penlon Limited; Vladimir Tsaganov, Head of AI Products and Solutions, Alibaba Cloud International; and Sharon (Ling Zhi) Heng, Consultant Ophthalmic Surgeon, Moorfields Private Eye Hospital. 

Alongside this, there was a session on Driving UK-China Collaboration in Smart Transport, which explored the opportunities for UK businesses to work with, as well as benefit from the advances that have been made in China’s smart transport solutions, with collaboration in this area offering environmental benefits to the UK, as well as financial benefits to companies, their employees and the country as a whole. The session was hosted by James Brodie, who was joined by speakers Simon Bisp, Head of Sales, BYD UK and Ireland; David Wong, Head of Innovation and Technology, SMMT; Professor Xu Hongming, Chair of Energy and Automotive Engineering and Head of the Vehicle Research Centre, University of Birmingham; and Herbert Lonsdale, International Automotive Consultant and former Global Skills Ambassador for the Institute of the Motor Industry.

The UK-China Business Forum 2025 concluded with a final CEO Fireside Chat, in which CBBC’s Chief Executive Peter Burnett OBE BBS sat down with Sir David Quarrey, Group Head of Public Affairs, HSBC. Quarrey shared valuable insights on the current state of UK-China relations and opportunities for economic growth and business collaboration in today’s geopolitical climate.

Following the Forum, attendees had the opportunity to join CBBC’s Spring Reception – an always enjoyable occasion to catch up with old friends and network with new contacts while celebrating the achievements of CBBC and our members. The Reception was sponsored by China Telecom (Europe) Ltd and Alibaba Cloud.

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As 2025 approaches, analysts are closely watching for signals on how China plans to navigate its domestic challenges and global ambitions. Here’s a breakdown of what to expect from China’s Two Sessions in 2025.

For a thorough post-event analysis and interactive Q&A session featuring a panel of industry experts, we recommend CBBC’s upcoming “Two Sessions Debrief” on 13 March 2025. Experts including Su Yue, Principal Economist at the Economist Intelligence Unit, and Feng Chucheng, Partner, Hutong Research, will discuss the outcomes from this year’s Two Sessions and provide analysis on the political and economic implications for UK business. Sign up here.

What are the Two Sessions?

The Two Sessions are a key platform for China’s political decision-making. The NPC, China’s top legislative body, reviews and approves major policies, the national budget, and government reports, including the Premier’s work report. The CPPCC, an advisory body, gathers representatives from various sectors to provide recommendations on policy issues. Together, these meetings offer a comprehensive roadmap for China’s governance and strategic priorities.

In recent years, the Two Sessions have focused on economic recovery, technological self-reliance, environmental sustainability, and social welfare. Against a backdrop of global uncertainty and domestic pressures, the 2025 meetings are expected to address these themes while reinforcing China’s long-term goals.

Economic stability and growth

Economic policy will take centre stage at the 2025 Two Sessions. China’s leadership is likely to prioritise measures to stabilise growth and boost consumer confidence. In 2024, China set a GDP growth target of around 5% and it is likely that this will be maintained in 2025.

To achieve this growth, China is expected to implement a more proactive fiscal policy. For example, the fiscal deficit ratio may be increased to approximately 4% of GDP, surpassing the traditional 3% threshold. This move would allow for greater government spending on infrastructure projects, social welfare programs, and initiatives aimed at stimulating domestic consumption.

Other analysts have pointed out that China’s property market, which has been a significant drag on economic growth, will be a focal point. The government may introduce further measures to stabilise the sector, including support for affordable housing and reforms to address local government debt.

Technological innovation and self-reliance

Technological self-reliance will be another major theme.

The emergence of Chinese AI company DeepSeek has garnered substantial attention in recent months. DeepSeek’s recent achievements have positioned it as a formidable opponent to Western tech giants like competitor OpenAI, highlighting China’s growing prowess in the tech sector.

Nevertheless, China continues to face challenges in achieving self-sufficiency in semiconductors and other critical technologies. The 2025 Two Sessions may unveil new policies to support research and development, as well as incentives for domestic companies to reduce reliance on foreign technology.

Green transition and climate goals

China’s commitment to achieving carbon neutrality by 2060 will remain a key focus. According to The Guardian, the 2025 Two Sessions are expected to outline plans for expanding renewable energy projects, including wind, solar, and nuclear power. The government may also introduce policies to promote energy efficiency and reduce emissions in heavy industries.

Others suggest that China’s carbon trading market is set to play a larger role in achieving climate goals. The 2025 meetings may include announcements on enhancing the market’s scope and encouraging green finance initiatives to support the transition to a low-carbon economy.

Demographic challenges

China’s ageing population and declining birth rate pose challenges to the country’s long-term economic stability, and policymakers are likely to propose reforms to try to slow their effects. For example, a member of the CPPCC has recently proposed lowering the legal marriage age from 22 to 18 for men, and from 20 to 18 for women, to encourage earlier family formation.

Additionally, the government may introduce incentives for families, including financial subsidies, tax breaks and enhanced access to childcare services. These measures aim to alleviate the financial burdens associated with raising children and to promote a more family-friendly environment.​

Geopolitical considerations

The Two Sessions will also provide insights into China’s approach to international relations. Amid the constantly-evolving situation of the war in Ukraine, and with tensions persisting between China and the West, particularly over trade, the 2025 meetings may highlight efforts to strengthen ties with emerging markets and regional partners.

As such, Chinese state media have reported that the Belt and Road Initiative (BRI) will remain a cornerstone of the country’s foreign policy. The 2025 Two Sessions may announce new infrastructure projects and partnerships, as well as reiterate China’s commitment to multilateralism and global governance.

Predictions for 2025

The 2025 Two Sessions will need to achieve a balancing act between addressing immediate challenges and advancing long-term goals. Key themes will include economic stability, technological innovation, environmental sustainability, and social welfare.

While the meetings are largely scripted, they offer valuable insights into the priorities of China’s leadership. As the country navigates a complex domestic and international landscape, the decisions made at the 2025 Two Sessions will have far-reaching implications for China and the world.

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During the visit, Wang and Lammy co-chaired the 10th China-UK Strategic Dialogue, where discussions covered economic cooperation, security, and geopolitical issues.

During the visit, Wang made the following points:

• Communication: China and the UK should strengthen dialogue and mutual trust.
• Cooperation: The recent China-UK Financial Dialogue yielded positive results, demonstrating the benefits of practical engagement.
• Global responsibility: As major countries, China and the UK should act responsibly on international issues.

The Prime Minister, who briefly joined Wang’s meeting with Powell, emphasised the following:

• Stability: The UK seeks a “consistent and respectful” relationship with China.
• Engagement: Britain will engage frankly on areas of disagreement while maintaining regular dialogue.
• Collaboration: Areas ripe for further UK-China collaboration include trade, investment, AI, clean energy, and climate change.

Lammy stated that he raised concerns over Ukraine, the Middle East, Hong Kong’s pro-democracy movement, and sanctions on British MPs. In response, Wang outlined China’s position on Ukraine, calling for no escalation and supporting peace talks.

Following the meetings, China’s Foreign Ministry outlined key agreements from the dialogue:

• Energy dialogue: The UK’s Secretary of State for Energy Security and Net Zero will visit China for energy talks.
• Science and innovation: The UK’s Secretary of State for Science, Innovation and Technology will visit China for bilateral cooperation discussions.
• Education: The UK’s Secretary of State for Education will hold ministerial talks in China.
• Trade and industry: Both sides will accelerate preparations for economic, health, and industrial cooperation forums.
• Financial and AI cooperation: The UK and China will deepen collaboration on financial services, clean energy, and AI.
• Global challenges: The two sides will expand cooperation on climate change, cybersecurity, and global governance.

Wang’s visit is just the latest sign pointing towards increased UK-China engagement under the current Labour government, a development welcomed by businesses with ties to both countries.

The Prime Minister met with President Xi Jinping in November 2024 on the sidelines of the G20 Summit in Brazil, at which he emphasised the importance of a “strong UK-China relationship”. Then, in January of this year, the Chancellor of the Exchequer Rachel Reeves visited Beijing for the UK-China Economic and Financial Dialogue, during which agreements worth £600 million were announced, focusing on areas such as financial services, trade facilitation, and climate-focused initiatives.

Image sourced from the Foreign, Commonwealth & Development Office on Flickr

The post Foreign Minister Wang Yi Visits UK appeared first on Focus - China Britain Business Council.

The Awards were announced and presented at the Chinese Burns Supper held by the China-Britain Business Council (CBBC) in Glasgow on 30 January 2025, with over 270 guests in attendance.  

Businesses were shortlisted across six different categories: Chinese Corporate of the Year, Educational Partnership of the Year, Scottish Corporate in Hong Kong 2025, ESG Champion of the Year, Marketing Campaign of the Year, and China Welcome of the Year.  

CNOOC Petroleum Europe Ltd won the award for Chinese Corporate of the Year: a category which celebrates the huge contribution that Chinese businesses make to the Scottish economy. CNOOC Petroleum Europe Ltd entered the UK North Sea in 2013 and has been a major player in the UK’s offshore energy industry ever since: employing around 600 staff across its onshore and offshore operations and investing in local communities through financial and voluntary support all the while exploring opportunities to integrate renewable energy sources in its offshore operations.  

Celebrating the power of UK-China educational collaboration, the award for Educational Partnership of the Year went to the Scottish Qualifications Authority (SQA) and the Chinese Service Centre for Scholarly Exchange (CSCSE). Following an MoU signing between the Scottish Executive and the Ministry of Education, China, in January 2003, the SQA has worked in collaboration with CSCSE to offer training and skills-based, short-cycle higher education qualifications, SQA Advanced Diplomas (ADs) in China for over 20 years – a partnership that has certainly stood the test of time.  

The award for Scottish Corporate in Hong Kong 2025, sponsored by Invest Hong Kong, showcased the impact that Scottish businesses are making in Hong Kong’s dynamic market. It was won by Cashmaster International, a leading global provider of cash management solutions with a design and manufacturing centre based in Dalgety Bay, Scotland, and extensive experience of supporting the Hong Kong market. Since having entered Hong Kong in 2017, Cashmaster International has supported over 25 large enterprises in the region and has provided more than 5,000 devices and accessories to the Hong Kong market. 

Leading Scottish engineering group, Weir Group took home the award for ESG Champion of the Year – a category that recognised the importance of sustainable business practices in Scotland and China. Weir Group has a long history of operations and engagement in China, and today the company employs around 600 staff in China. In 2024, Weir Group marked an important and exciting milestone as it opened a brand new, $60 million state-of-the-art manufacturing facility in Xuzhou – a facility setting new standards for Weir in terms of efficiency and sustainability, and supporting the company’s delivery of its commercial and ESG goals. 

The award for Marketing Campaign of the Year, sponsored by logistics company W.M. London, went to leading China Marketing agency, Emerging Comms, and Glencairn Crystal, Scotland’s premier creator of professional whisky glassware. The marketing campaign run by Emerging Comms tackled unique challenges that Glencairn Crystal faced in the Chinese market: boosting the brand’s credibility, image and increasing brand awareness amongst Chinese consumers.  

The campaign partnered with industry KOLs to create compelling educational content from Emerging Comms’ Scottish studio, with whisky-related influencers delivering expert endorsements, and lifestyle KOCs generating authentic testimonials. The campaign achieved over 852,000 reads, and has helped establish sustainable growth for Glencairn Crystal in China.  

Finally, the return of an award category that had become impossible due to travel restrictions in recent years, China Welcome of the Year provided a timely opportunity to acknowledge the efforts of Scottish companies in the retail, travel and hospitality sectors who have gone over and above in welcoming Chinese visitors to Scotland. Sponsored by the Scottish Confucius Institute for Business and Communication at Heriot-Watt University, the award went to leading travel consultancy and destination management company, Magna World Ltd.  

Established in 2015 – with headquarters in Scotland and a branch in Hainan, China – Magna World has evolved from organising bespoke tours to becoming a significant contributor to Scotland’s economy through inward investment. Magna World has built strong relationships with leading Chinese travel agencies and created memorable experiences such as whisky tastings, historical castle stays, and golf packages, reflecting Scotland’s rich heritage. And in a milestone achievement, the company expanded its role by securing inward investment to purchase two historic castles in Scotland: supporting local tourism and hospitality, as well as preserving Scotland’s cultural heritage.  

Now going into its 12th year (a full cycle of the Chinese zodiac!), the China-Britain Business Council’s Chinese Burns Supper, in partnership with the University of Glasgow and Scottish Development International and Scottish Enterprise, has become a permanent fixture in the China-Scotland business calendar.   

The unique event featured a fusion of Burns Night traditions with those of Chinese New Year as a backdrop for black-tie networking for the China-Scotland business and educational community. Guests enjoyed a dynamic programme of entertainment – ringing in the Year of the Snake in style – with the customary Address to a Haggis, a Lion Dance, Chinese Ribbon Dancing and for the first time ever, a ceilidh, amongst other performances. Bufan Li, a Chinese student in the University of Glasgow’s music department, sang A Red, Red Rose accompanied by Andy Chung on guitar. 

Funds were raised to support two noteworthy charities: Waverly Care – a Glasgow-based HIV and hepatitis C charity, with a range of specially tailored services supporting the Chinese community affected in Scotland. And the Migrant Children’s Foundation – which enriches and develops the lives and education of disadvantaged children in China via a plethora of educational and health-focused initiatives. 

The Awards were generously supported and made possible by CBBC’s partners and sponsors:

The University of Glasgow; Hong Kong Economic and Trade Office, London; Scottish Development International; Scottish Enterprise; The Scottish Confucius Institute for Business and Communication at Heriot-Watt University; Invest Hong Kong; WM London 

The full list of Nominees for each Award category is as follows: 

Chinese Corporate of the Year 

• BYD 
• CNOOC Petroleum Europe Limited  
• Hainan Airlines 

Educational Partnership of the Year 

• Scottish Qualifications Authority & CSCSE 
• Lancaster University College at Beijing Jiaotong University 
• Uoffer Global 
• Edinburgh Napier University & Shanghai Normal University (SHNU) 

Scottish Corporate in Hong Kong 2025 

• EGG Lighting 
• Cashmaster International 
• Speak with Impact 
• Murray & Currie 

ESG Champion of the Year 

• Burness Paull LLP 
• Weir Group 
• University of Strathclyde 

Marketing Campaign of the Year 

• Shanghai Yiming Cultural Information Consulting 
• Edrington 
• The Edinburgh Natural Skincare Company / Commercial Cross  
• Glencairn Crystal / Emerging Comms 

China Welcome of the Year 

• Johnnie Walker Princes Street 
• Magna World Travel 
• Montblanc Consulting 

For further enquiries about the awards, please contact James Brodie at James.Brodie@cbbc.org.

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From evolving trade policies to technological decoupling, this article gives a brief overview of what we know so far about what Trump 2.0 means for China.

Whither the US-China trade war

A defining feature of Trump’s first term was the US-China trade war, characterised by tariffs on hundreds of billions of dollars in Chinese goods. While no immediate tariffs were announced in Trump’s first day in office, a trade memo directed the government to scrutinise US trading relationships and evaluate China’s compliance with the 2020 US-China Economic and Trade Agreement.

There were some signs of détente in the form of a meeting between Elon Musk and Chinese Vice President Han Zheng just before the inauguration, where Han reportedly invited US firms including Tesla to deepen investments in China and Musk reaffirmed Tesla’s commitment to expanding cooperation with China.

Nonetheless, this measured start is unlikely to extend into the long term. Trump’s approach to trade will focus on securing tangible, short-term wins for the US, often without regard for broader strategic consequences. Moreover, China is in a weaker economic position than it was during the opening salvo of the trade war, as it faces a sticky real estate crisis, rising youth unemployment and depressed consumer confidence.

The TikTok question

For an example of Trump’s strategic unpredictability in US-China relations, we need only look to his handling of the TikTok controversy. During his first term, Trump ordered a ban on the Chinese-owned app, citing national security concerns. However, on 20 January 2025, Trump signed an executive order to delay the enforcement of a law requiring TikTok owner ByteDance to sell its US operations to an American or allied buyer or face a ban for an additional 75 days. After going dark for a few hours on Sunday, an announcement on the app credited Trump as its saviour. The TikTok decision underscores Trump’s tendency to use high-profile cases as leverage for broader concessions – especially if they benefit him, as TikTok did during his campaign. China will have to navigate the risks and opportunities of this transactional policymaking.

Decoupling in technology

Despite his TikTok reprieve, technology will remain at the heart of Trump’s US-China policy.

His first term saw the blacklisting of companies such as Huawei, and restrictions on semiconductor exports – actions that disrupted China’s tech ecosystem. The Financial Times reports that further measures targeting critical technologies – such as artificial intelligence and quantum computing – are likely to curb China’s ambitions in these fields.

For China, the emphasis will shift to achieving self-reliance. The Made in China 2025 strategy, which aims to reduce dependence on foreign technology, is poised to take on even greater importance. However, Beijing faces significant hurdles, including its reliance on advanced semiconductor manufacturing equipment from US-aligned countries. While China has made progress in innovation, it remains constrained by gaps in high-end technologies, a vulnerability that Trump’s policies will continue to exploit.

Geopolitical rivalries in Asia

Trump’s “America First” agenda has historically created openings for China to expand its influence across Asia. However, his second term may see a recalibration of this strategy. Trump is likely to adopt a more assertive stance in the Indo-Pacific, leveraging alliances to counterbalance China’s growing clout.

This renewed focus aligns with Trump’s broader goal of containing Beijing’s regional ambitions, particularly in the South China Sea. Nevertheless, Trump’s transactional diplomacy could undermine the unity of these alliances. For example, his demands for increased defence contributions from allies like Japan and South Korea may alienate key partners, inadvertently strengthening China’s position in the region.

Conclusion: A high-stakes four years

Trump’s second term presents both challenges and opportunities for Beijing, from potential trade resets to heightened risks of technological decoupling and geopolitical competition. For policymakers on both sides, managing this complex relationship will require balancing immediate priorities with long-term strategic considerations.

China’s response to Trump’s agenda will be closely watched worldwide. Whether Beijing chooses to double down on self-reliance or seeks avenues to de-escalate tensions, the stakes are immense for the global economy and international stability. As the two superpowers continue their strategic rivalry, the international community can only hope for a path that avoids escalation and fosters cooperation on pressing global issues.

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Who or what is ByteDance?

ByteDance is a Chinese-owned tech giant founded in March 2012 by Zhang Yiming. Zhang Yiming is an entrepreneur who is now one of richest people in China due to the success of the company’s portfolio of apps worldwide, including short-form video platforms TikTok and Douyin (TikTok’s Chinese counterpart).

Douyin was founded in 2016 and has built up a network of over 600 million daily active users. Meanwhile, TikTok was launched in the US in 2018 after it merged with lip-sync video platform Musical.ly, which ByteDance purchased for US $1 billion. Today, TikTok has an estimated 170 million users in the US.

ByteDance also owns several popular apps within the domestic Chinese market, including Toutiao. Toutiao is a news aggregator platform powered by artificial intelligence, and has over 120 million daily active users. One of the earliest apps created by ByteDance was Neihan Dianzi, a platform that enabled users to share jokes through videos, memes or text, but which was subsequently shut down by Chinese authorities in 2018.

What does the Supreme Court’s decision mean for TikTok?

The US Supreme Court has unanimously upheld a law requiring TikTok’s Chinese parent company, ByteDance, to sell the app by 19 January 2025 or face a nationwide ban. The decision stems from national security concerns over data collection and potential foreign government influence. If ByteDance does not divest (which it has repeatedly stated it will not do), TikTok will be removed from Apple and Google app stores in the US, preventing new downloads and updates, which could eventually render the app unusable.

The White House has said that President Joe Biden will not enforce the ban during his remaining time in office, stating, “TikTok should remain available to Americans, but simply under American ownership or other ownership that addresses the national security concerns identified by Congress in developing this law.” As a result, the decision has been left to incoming President Donald Trump, who has said he plans to “save” the app (despite the ban first coming to the fore during his last term in office).

Could TikTok be banned in the UK?

While other countries, including the UK, have expressed concerns about the security of user data when it comes to Chinese tech companies, it is unlikely ByteDance will face a ban like the one suggested in the US. TikTok has recently shown a willingness to cooperate with British authorities in addressing privacy concerns after inviting parliamentary committees to visit TikTok’s offices to analyse its algorithms.

Furthermore, it has been suggested that the bans on Chinese technology products were used as leverage during the run-up to the US election in a bid to gain favour among certain voters through extensive press coverage.

Due to close relationships with both China and the US, the UK was put in a precarious position to act, although it is unlikely that the new president-elect will continue the politics of his predecessor.

Will anything change once Trump is in power?

Despite Trump’s animosity towards TikTok during his first term in office, he now seems likely to try and save TikTok. Earlier this week, the Financial Times reported that Trump ally Elon Musk could be brought in to try and negotiate the sale of the platform. The most likely action for Trump would be to enact an Executive Order postponing the ban to allow more time for a potential buyer for TikTok (or alternative workaround) to be found.

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