Why Labour is strengthening ties with China after years of rollercoaster relations

by Sofia

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The sprawling city of Chongqing in southwestern China is an incredible sight. Built on mountainous terrain and crisscrossed by rivers, it is connected by vast elevated roads. Trains even run through some buildings.

TikTokers have begun documenting their commutes in the striking urban architecture, generating millions of likes and much hype.

But it is also where, on a somewhat quieter trip, mayors and their deputies from the UK recently visited – the largest British civic delegation to go there in history.

The whole trip, which took place in March, received substantial Chinese media coverage, despite flying more under the radar in the UK. The impression it left on some of the politicians who travelled there was vast.

"[The city is] what happens if you take the planning department and just say 'yes' to everything," reflects Howard Dawber, deputy London mayor for business. "It's just amazing."

Hector Retamal/ AFP via Getty Images
TikTokers have begun documenting their commutes among the striking urban architecture of Chongqing

The group travelled to southern Chinese cities, spoke to Chinese mayors and met Chinese tech giants. So impressed was one deputy mayor that, on returning home, they bought a mobile phone from Chinese brand Honor (a stark contrast from the days the UK banned Huawei technology from its 5G networks, just a few years ago).

Roughly half-a-dozen deals were signed on the back of the trip. The West Midlands, for example, agreed to establish a new UK headquarters in Birmingham for Chinese energy company EcoFlow.

But the visit was as much about diplomacy as it was trade, says East Midlands deputy mayor Nadine Peatfield, who attended. "There was a real hunger and appetite to rekindle those relationships."

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David Cameron takes Xi Jinping for a pint at a UK pub

To some, it was reminiscent of the "golden era" of UK-China relations, a time when then-Prime Minister David Cameron and Chinese President Xi Jinping shared a basket of fish and chips and a pint.

Those days have long felt far away. Political ties with China deteriorated under former UK Conservative Prime Ministers Boris Johnson, Rishi Sunak and Liz Truss. The last UK prime minister to visit China was Theresa May, in 2018.

The recent delegation – and the talk of Sir Keir Starmer possibly visiting China later this year – all suggests a turning point in relations. But to what greater intent?

A 'grown up' approach

The course correction seemed to begin with the closed-door meeting between Sir Keir and Chinese President Xi in Brazil last November. The prime minister signalled that Britain would look to cooperate with China on climate change and business.

Since then, Labour's cautious pursuit of China has primarily focused on the potential financial upsides.

In January, Chancellor Rachel Reeves co-chaired the first UK-China economic summit since 2019, in Beijing. Defending her trip, she said: "Choosing not to engage with China is no choice at all."

Reeves claimed re-engagement with China could boost the UK economy by £1bn, with agreements worth £600m to the UK over the next five years — partially achieved through lifting barriers that restrict exports to China.

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Rachel Reeves claimed re-engagement with China could boost the UK economy by £1bn

Soon after, Energy Secretary Ed Miliband resumed formal climate talks with China. Miliband said it would be "negligence" to future generations not to have dialogue with the country, given it is the world's biggest carbon emitter.

Labour simply describes its approach as "grown-up". But it all appears to be a marked shift from the last decade of UK-China relations.

During the so-called "golden era", from 2010, the UK's policy towards China was dominated by the Treasury, focusing on economic opportunities and appearing to cast almost all other issues, including human rights or security, aside.

By September 2023, however, Rishi Sunak said he was "acutely aware of the particular threat to our open and democratic way of life" posed by China.

'The world will become more Chinese'

Labour claimed in its manifesto that it would bring a "long-term and strategic approach".

China has a near monopoly on extracting and refining rare earth minerals, which are critical to manufacturing many high-tech and green products. For example, car batteries are often reliant on lithium, while indium is a rare metal used for touch screens. This makes China a vital link in global supply chains.

"China's influence is likely to continue to grow substantially globally, especially with the US starting to turn inwards," says Dr William Matthews, a China specialist at Chatham House think tank.

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Ed Miliband said it would be "negligence" to future generations not to have dialogue with China

"The world will become more Chinese, and whilst that is difficult for any Western government, there needs to be sensible engagement from the get-go."

Andrew Cainey, a director of the UK National Committee on China, an educational non-profit organisation, says: "China has changed a lot since the Covid-19 pandemic. To have elected officials not having seen it, it's a no brainer for them to get back on the ground".

Certainly many in the UK's China-watching community believe that contact is an essential condition to gain a clearer-eyed view of the opportunities posed by China, but also the challenges.

Questions around national security

The opportunities, some experts say, are largely economic, climate and education-related. Or as Kerry Brown, Professor of Chinese Studies at King's College London, puts it: "China is producing information, analysis and ways of doing things that we can learn from". He points to the intellectual, technological, AI, and life sciences opportunities.

Not engaging with China would be to ignore the realities of geopolitics in the 21st century, in Dr Matthew's view, given that it is the world's second largest economy. However he also believes that engagement comes with certain risks.

Charles Parton, who spent 22 years of his diplomatic career working in or on China, raises questions about the UK's economic and national security.

For example, the government is reportedly weighing up proposals for a Chinese company to supply wind turbines for an offshore windfarm in the North Sea. Mr Parton warns against allowing China access to the national grid: "It wouldn't be difficult in a time of high tension to say, 'by the way, we can turn off all your wind farms'".

But earlier this year, the China Chamber of Commerce to the EU issued a statement expressing concern over the "politicisation" of deals between wind developers in Europe and Chinese turbine suppliers.

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