If the U.K. isn’t able to secure integration into the EU’s Made in Europe rules, “that could have a quite a big implication” for Chinese investment in the U.K., said a senior British business representative familiar with the JETCO plans. There’s definitely “some concerns,” they explained, around what the IAA would mean for Chinese firms — and especially automakers — that invest in the U.K.

“With Chinese businesses, they are looking at the U.K. as a springboard for them to enter the EU market,” the senior business representative said. “But if this Made in EU rule were to come through, then that will make their strategic decision on investing in the U.K. very different,” they said, because Chinese firms wouldn’t be able to access the EU market seamlessly from the U.K.

Focus, focus

Wang’s discussions with Trade Secretary Kyle follow on from Prime Minister Keir Starmer’s trip to Beijing in January, where he and China’s Xi Jinping agreed to begin work on a joint feasibility study sounding out the start of talks for a China-U.K. Trade in Services Agreement.

When Kyle meets Wang next week, “the focus will be on services,” said the senior British business representative quoted above. “We are a services-driven economy. If we want to see significant progress, I think the opportunity will come from services.”

New research published by the China-Britain Business Council (CBBC) shows Britain’s services exports to China reached a record high last year, with the trade surplus growing 7.5 percent to £11.7 billion compared with 2024. Britain’s goods exports also grew six percent year-on-year to £29.6 billion from £27.9 billion.

“Building on the momentum from the prime minister and trade secretary’s visit to China earlier this year, we continue to explore a range of opportunities to further enhance our trade relations and support economic growth,” said a U.K. government spokesperson. “We are taking a consistent approach to China, cooperating where we can and challenging where we must, and continue to engage on trade where it supports our national interests.”