Keir Starmer is reportedly scheduled to visit China next week, leading a delegation of British business leaders, according to Reuters. The trip follows the UK government's approval of plans for Beijing to construct a new embassy in London.

The delegation will include representatives from major British companies such as BP, HSBC, Intercontinental Hotels Group (IHG), Jaguar Land Rover, and Rolls-Royce. These firms are also expected to participate in a revamped UK-China CEO council, aimed at fostering stronger economic ties between the two nations. The council's previous iterations have facilitated discussions leading to multi-million pound investment deals in sectors ranging from renewable energy to automotive manufacturing.

Downing Street offered no immediate comment on the reported trip. However, sources indicate that Jonathan Powell, the national security adviser, traveled to Beijing in November for discussions with Wang Yi, China's top diplomat, paving the way for Starmer's anticipated visit. The November talks likely addressed trade imbalances, intellectual property concerns, and market access for British firms operating in China.

The visit occurs against a backdrop of complex economic relations between the UK and China. Bilateral trade reached approximately £110 billion in 2023, but concerns persist regarding China's trade practices and human rights record. The approval of the new Chinese embassy, despite some political opposition, signals a desire to maintain diplomatic and economic engagement.

HSBC, with a significant presence in Asia, stands to benefit from strengthened UK-China relations. The bank derives a substantial portion of its revenue from the region, and closer ties could facilitate further expansion and investment opportunities. Similarly, BP, with its focus on renewable energy, may seek to collaborate with Chinese companies on clean energy projects, potentially unlocking new markets and revenue streams. Jaguar Land Rover, owned by Tata Motors, has invested heavily in the Chinese market and will likely aim to bolster its sales and manufacturing operations. IHG, a global hotel chain, could see increased demand from Chinese tourists and business travelers as travel restrictions ease. Rolls-Royce, known for its aerospace and defense technologies, may explore opportunities for collaboration in the civil aviation sector.

The timing of the visit is particularly significant, given the ongoing global economic uncertainty and the UK's efforts to diversify its trade relationships post-Brexit. The trip could provide a platform for addressing trade barriers, promoting British exports, and attracting Chinese investment into the UK. Further details regarding the agenda and specific objectives of the visit are expected to be released in the coming days.