Former UK business chief urges stronger trade ties with China as Lammy visits

The UK's foreign minister David Lammy is in Beijing on Friday for a two-day visit. It comes as Britain's business community is seeking to boost economic and trade ties globally in the post-Brexit era.

Ahead of the trip, the Chinese Foreign Ministry said "China is ready to work with the UK as a partner, to adhere to openness and cooperation, to promote mutual benefit and win-win results, and promote the steady and long-term development of China-UK relations."

Those relations have come under strain in recent years, in policy areas including Hong Kong and Taiwan. Prime Minister Keir Starmer has said he UK will seek to "cooperate" on issues such as net zero, and "compete" where it has different interests. 

Adair Turner – a former chair of the Financial Services Authority and director-general of the Confederation of British Industry, who now serves in the UK's upper house of parliament, the House of Lords – told CGTN that cooperation was crucial, if difficult.

"We live in a world of very significant geopolitical tensions and disagreements ...the world is a much more tricky place in the sense that it was maybe 50 years ago," said Turner.  

"I think it's very important that we maintain economic relations and in particular on issues to do with climate change, where China has emerged as a hugely important developer of new clean technology," he added. 

"I see no reason why we shouldn't be cooperating to bring together the best of Chinese and UK science. On battery technology, driving through to the commercialization both in the UK and China," said Turner, describing it as "a technology which can transform our energy systems for the benefit of the whole world."

Dispute over tariffs

China is currently locked in a dispute with the EU over tariffs on electric car exports, a dispute that trade experts fear could escalate into a wider tit-for-tat series of penalties on both sides. European Commission chief Ursula von der Leyen has said Europe "wants a level playing field", with China while negotiating with Beijing on mechanisms such as price commitments or EU investments as a solution,

Germany – the bloc's largest economy, which voted against the tariffs – has said it is hoping for an agreement by the end of October.

Adair Turner has urged the UK to adopt a different approach. Using the example of Chinese-made solar panels, he told CGTN: "I think there may be justified tariffs according to WTO rules, where there are specific forms of subsidy and we all suspect that other countries do that, but they shouldn't just be aimed to put an end to trade".

"One of the ways that China became rich was to welcome inward investment from the West. That was when it was behind technologically. I learn from that, and we should be willing to do that in Europe as well," he added.