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China Courts US Allies as Starmer Visits Beijing

Beijing touts reliability, citing robust inflows alongside rising yuan usage.

Overview

  • UK Prime Minister Keir Starmer is visiting China this week to refresh strained business ties, marking the first trip by a British leader since 2018.
  • Canada’s Prime Minister Mark Carney visited earlier in January and announced tariff‑easing steps with Beijing as President Trump threatened 100 percent duties on Canada if the deal proceeds.
  • Official figures show a record $1.2 trillion trade surplus for 2025, December foreign‑exchange inflows of $100.1 billion, and reserves at a decade high of $3.36 trillion.
  • After steep U.S. tariffs in 2025, Chinese shipments to the United States fell 20 percent while exports rose to Africa, Latin America, Southeast Asia and the European Union.
  • China is expanding market‑opening pilots and using the yuan for most cross‑border transactions, yet analysts warn many partners still worry about trade practices and economic coercion.