Positive indicator on how to shape a better year (China Daily editorial)

The only thing certain about 2025 is uncertainty. And uncertainty constitutes the main threat to the economic health of countries, which thrives on optimistic expectations and otherwise deteriorates.

The resumption of the Sino-British economic and financial dialogue this weekend, after its suspension since 2019, constitutes a strategic foresight choice on the part of the two countries which promises profound mutual benefits.

During consecutive years of Conservative leadership in the United Kingdom, economic and trade relations between the two countries have been hijacked by a narrative of “national security”, echoing that of the Joe Biden administration in the United States , which resulted in an overall frosty relationship. Although Chancellor Rachel Reeves of the British Treasury came to Beijing for the dialogue, her visit was caricatured by the opposition as a return to “Operation Kowtow”.

But unlike her critics at home, Chancellor Reeves and her government colleagues know the need for a “stable and pragmatic” Sino-British relationship. While these people accused her of “fleeing to Beijing” instead of staying home to weather the turmoil in domestic bond markets, her eyes were on the long-term strategic dividends that this crucial relationship promises.

Unlike the Conservatives, Prime Minister Keir Starmer's government has demonstrated remarkable pragmatism in its China policy. Chancellor Reeves' visit to China, which follows that of Foreign Secretary David Lammy in October, and Starmer's meeting with Chinese President Xi Jinping on the sidelines of the G20 summit in Brazil in November, are seen as part of efforts by Labor leaders to repair strained relations.

At the meeting, leaders of the two countries agreed that China and the United Kingdom share many common interests and bear important responsibilities in solving global challenges and safeguarding global peace and development. They agreed on the need to strengthen dialogue, improve mutual understanding and conduct exchanges and cooperation in a wide range of areas.

Despite rumors that China poses a threat to national security, Starmer's cabinet saw opportunities for cooperation on topics such as global stability, climate change and the green transition. And these are just some of the most obvious areas of mutual benefit.

Unlike the conservative puppets in Washington, the Labor government has a more rational and objective perspective on China's development and the benefits of cooperation.

“Growth is the number one mission of this government to improve the situation of our country. And that’s why I’m in China to unlock tangible benefits for British businesses that export and trade around the world,” Reeves said.

In a Times article, Reeves argues that China offers the UK an opportunity to support its growth. Her country cannot ignore the fact that China is its fourth largest trading partner, with exports supporting almost half a million jobs in the UK, she wrote. “Choosing not to engage with China is therefore not a choice at all,” she said.

She has brought a delegation of British business and finance executives to China, and she is reaping a substantial package of “tangible benefits”.

“Overall, this government's re-engagement with China already puts us on track to deliver up to £1 billion of value to the UK economy,” she announced at a briefing. press release after meetings with Chinese Vice Premier He Lifeng. Their talks covered discussions in areas such as sustainable finance, capital market connectivity, pensions and regulatory alignment, trade and investment, and market access for goods and services. During which they agreed to remove barriers to investment in areas such as clean technology, life sciences, digital technology and financial services.

By choosing to work with China for shared growth rather than erecting new barricades in an effort to “de-risk”, as US-led exclusionary efforts are euphemistically described, the UK has set a positive example for other countries at the start of what promises to be another tumultuous year.