Illustration: Xia Qing/GT

Technical consultations on a joint feasibility study for a China-UK Services Trade Agreement were held in London from Tuesday to Wednesday, making substantive progress. Both sides agreed to accelerate follow-up work and strive to complete the joint feasibility study at an early date, according to a press release from China's Ministry of Commerce (MOFCOM) on Sunday.

China and the UK signed a memorandum of understanding in January to formally launch the joint feasibility study for a bilateral services trade agreement. Prior to the latest round of talks, the two countries held two rounds of online technical consultations and exchanged in-depth views on issues related to the study, according to the press release.

The continued advancement of the feasibility study reflects that there is significant untapped potential in services trade. This trade cooperation reflects the complementary nature of the two economies, and the broad opportunities in both markets could unlock to boost mutually beneficial economic growth.

Speaking at a regular press conference on Thursday, MOFCOM spokesperson He Yadong noted that the UK is an important services trade partner of China. The bilateral services trade exceeded $30 billion in 2025 which has significant room for expansion. China is willing to work with the UK to speed up the joint feasibility study and create favorable conditions for raising bilateral services trade cooperation to a higher level.

The rationale is straightforward. China and the UK possess highly complementary strength in promoting trade in services. The UK is China's third-largest trading partner, third-largest investment destination and third-largest source of foreign investment in Europe, while China is the UK's largest trading partner in Asia. 

Over the years, economic cooperation has become increasingly diversified. British companies have strong capabilities in finance, professional services, engineering, biotechnology and information technology, while China offers a huge market as well as a highly competitive manufacturing base. These advantages make services trade a natural area for deeper cooperation.

More importantly, China's own economic transformation toward high-quality development is creating new demand for high-quality services. As the world's second largest economy, China is undergoing simultaneous industrial upgrading and consumption upgrading. This creates enormous opportunities for cooperation in services trade. According to the National Development and Reform Commission, China's services sector generated total added value hitting 80 trillion yuan ($11.8 trillion) in 2025 for the first time. During the 15th Five-Year Plan (2026-30), the sector is expected to surpass 100 trillion yuan in size.

So, where will future growth stem from? Chinese experts point to four major drivers: rising demand for high-end producer services as industries continue to upgrade; growing demand for higher-quality consumer services as household consumption evolves; new service business models created by new tech, and institutional opening-up that will open up greater opportunities in services trade.

Among the drivers, growing producer services are particularly relevant to China-UK cooperation. Technology services, modern logistics, business services and software and information services have become important engines of economic growth. Demand for professional business services, including legal services, human resources, accounting, consulting, corporate management and more is becoming increasingly sophisticated as Chinese companies expand internationally and its industries move up the value chain. These are the areas where British firms possess comparative advantages.

China's high-level opening-up efforts are expected to create more opportunities for services trade. In recent years, China has kept on expanding market access and improving business environment for foreign investment. As China moves toward higher-standard opening-up, overseas companies, including those from the UK, are likely to find greater opportunities in one of the world's most vibrant and fastest growing services markets.

At the same time, expanding bilateral trade requires both China and the UK to uphold the principles of free trade and support the multilateral trading system in the world. During the 15th China-UK Joint Economic and Trade Commission meeting in London, Chinese Commerce Minister Wang Wentao expressed China's hope that the UK would provide a fair, equitable and non-discriminatory business environment for Chinese enterprises investing in the UK. He emphasized that, as important members of the World Trade Organization (WTO), China and the UK should work together to implement the outcomes of the WTO's 14th Ministerial Conference.

The progress in the China-UK services trade feasibility study carries significance. Despite global trade volatilities, closer cooperation provides the best response to tackle common economic challenges. With China's expanding demand for high-quality services and continuous pursuit of high-quality opening-up, services trade represents greater opportunities which will generate greater benefits for both countries and peoples. 

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn