UK Business and Trade Secretary Jonathan Reynolds has said that he is “certainly open to having a conversation” about reopening the UK-China Joint Economic and Trade Commission (JETCO), POLITICO reported on Tuesday. The mechanism was set up in 1996 to boost bilateral trade and investment but was suspended after the 13th meeting in 2018.
The UK’s willingness to have talks over reopening the JETCO with China is a positive development that should be welcomed. However, getting it done won’t be easy for London, as previous rhetoric by the UK side about potentially reviving the key trade talks yielded little progress in recent years. To move forward, the UK needs to take more concrete actions to mitigate geopolitical influences and other challenges.
The JETCO serves as a vital platform for fostering understanding and promoting trade and investment between the UK and China. The outcomes of previous annual meetings, held until 2018, have significantly contributed to the expansion and facilitation of economic and trade cooperation.
Although London’s interest in opening to talks over reopening this dialogue mechanism over the past couple of years hasn’t turned into action, some media reports recently indicated that since British Prime Minister Keir Starmer took office in July, his administration has sent more positive signals about interest in improving investment and economic cooperation.
For some time, China-UK economic and trade cooperation has faced setbacks and volatility. This is partly due to certain British politicians adopting a tougher stance on Chinese goods and investments, citing “security concerns,” as well as the geopolitical influence of the US, which in all have created an atmosphere of uncertainty that hinders the potential for bilateral economic and trade relations. These factors ultimately contributed to the suspension of this important dialogue mechanism.
In contrast, China has consistently embraced an open and constructive approach to foster economic and trade cooperation with the UK, aiming for mutual benefits. Economic and trade cooperation between China and the UK once flourished during a “golden era” of bilateral ties, largely propelled by initiatives of the business communities in both nations, as well as pragmatic policies toward Chinese investment and goods implemented by the UK government during that period.
Economic and trade cooperation between China and the UK shows considerable complementarity and significant potential, as evidenced by annual trade value consistently exceeding $100 billion and bilateral investment surpassing $50 billion.
Both countries can further enhance collaboration in traditional sectors while also exploring opportunities in emerging fields such as new energy, artificial intelligence, biomedicine and the digital economy, which could provide significant momentum for the economies of both countries.
The UK’s interest in talks about resuming the trade dialogue with China would be in alignment with the interests and aspirations of many British businesses. If the JETCO could be reopened, it could help address some of the challenges that obstruct trade and investment cooperation, and companies from both sides will have the potential to unlock significant trade and investment opportunities.
Trade is an area “where cooperation is possible with China” – but the UK would have its own trade “asks” of China if it does start to re-engage, the UK’s business chief was quoted by POLITICO as saying.
Rebuilding mutual trust requires significant efforts and concrete actions. If the UK aims to enhance bilateral trade relations, it needs to also pay attention to China’s concerns. For instance, issues such as whether the UK will treat Chinese investments fairly are crucial considerations that need to be addressed. Only through understanding and cooperation can both nations foster a more positive relationship.
