Starmer Encourages UK Businesses to Expand Trade With China While Acknowledging Security Risks

Prime Minister Keir Starmer has urged British businesses to step up their engagement with China, arguing that the United Kingdom must pursue economic opportunities with one of the world’s most influential economies while still protecting national security. In a major foreign policy address delivered in London, Starmer acknowledged that China presents real security concerns but said the government’s job is to give companies the support and clarity they need to pursue commercial deals with confidence. His message signals a shift toward a more measured and pragmatic approach after years of fluctuating relations between the two countries.

Tensions Have Shaped Recent UK China Relations

Starmer’s remarks come during a complicated period in the UK’s dealings with Beijing. Westminster has been rattled by controversies, including the collapse of a high-profile spying trial involving a British parliamentary researcher accused of passing intelligence to China. Concerns have also been raised about China’s plans to build a large new embassy on the former Royal Mint site, a decision expected on December 10. Reports suggest Starmer is likely to approve the project, though officials insist no final decision has been made.

If confirmed, this would mark a notable moment in UK-China relations, and Starmer is also expected to visit China next year. Such a trip would be the first by a British prime minister since Theresa May’s visit in 2018. Critics within and outside Parliament have argued that the Labour government is adopting too soft a stance on China, but ministers maintain that economic engagement can coexist with firm national security protections.

Security Concerns Still Front and Centre

National security agencies have repeatedly warned of Chinese intelligence activity in the UK. Last month MI5 told Members of Parliament that Beijing’s operatives were attempting to recruit individuals working in or around Parliament. These alerts have intensified debate about how Britain should manage political, economic and technological interactions with China.

The Chinese embassy responded strongly to MI5’s warning, accusing the British government of fabrication and slander. It also urged the UK to avoid making decisions that further damage bilateral relations. The planned embassy in London has become symbolic of these tensions, with some Conservative MPs describing it as a potential surveillance hub and raising concerns about data cables running beneath the site from the City of London.

Starmer Calls for a Mature Approach

Despite the criticism, Starmer argued that Britain must adopt what he called a “grown up” approach to China. He described China as a country of immense scale, creativity and ambition, while also acknowledging that it poses national security challenges that the UK cannot ignore. Starmer criticized previous governments for allowing relations with China to swing between extremes, using language that captured the volatility of the past decade. He said Britain had gone from celebrating a “golden age” to freezing the relationship in what he described as an “Ice Age.”

For Starmer, the goal is stability and realism. He stressed that the UK does not need to view its China policy as a binary choice between full partnership and full disengagement. Instead, it can pursue cooperation where appropriate and firm protection where necessary.

Defence and Critical Sectors Remain Protected

Starmer made clear that certain areas of the economy and national infrastructure are off limits for deeper cooperation. Sensitive fields such as defence, artificial intelligence, advanced technology and critical infrastructure will continue to be protected by strict government oversight. These sectors are seen as central to national resilience, and Starmer reiterated that the government will always safeguard the country’s security and economic interests in these areas.

Expanding Trade in Other High Growth Sectors

While drawing firm boundaries around sensitive sectors, the prime minister also highlighted the enormous economic potential in others. He encouraged UK companies to pursue opportunities in financial services, professional services, creative industries, pharmaceuticals and luxury goods. These are areas where the UK already excels and where demand from China’s consumer and business markets continues to grow. Starmer said the government would actively support companies seeking to expand in China, emphasizing that stable trade relations could help boost the UK economy at a time of broader economic challenges.

Diplomacy Complicated by Embassy Disputes

The future of China’s proposed “mega embassy” in London remains uncertain. If approved, it would become the largest Chinese diplomatic mission in Europe. Yet concerns continue to swirl around its location and security implications. Meanwhile, the UK’s own embassy rebuilding plans in Beijing have been delayed due to planning issues. Downing Street officials say they cannot comment publicly on the Chinese embassy proposal because it is currently part of a quasi judicial planning process.

A Strategy Built on Pragmatism

Starmer’s speech reflects his broader foreign policy theme of balancing realism with ambition. He sees China as a vital economic partner but one that requires firm caution and strategic clarity. His message to businesses was unambiguous. There are significant opportunities in China, and the government is ready to help companies pursue them, so long as security remains at the forefront of decision making.