Keir Starmer arrived in Beijing on Wednesday for the opening trip by a British leader in eight years and brought along nearly 60 business executives from major names like HSBC and Airbus.
Before he left, Starmer posited that Britain moves with its own purpose on the world stage even if the reality of the last few months suggests a more constrained environment.
Washington put 15 per cent taxes on European goods last July and Donald Trump threatened even higher taxes unless Denmark gave Greenland to the United States. Trump eventually moved on after a meeting in Davos with Mark Rutte but the repetitive pressure has turned into a familiar routine for European leaders.
Survival Dictates Compromise
Europe finalised two massive agreements in January 2026 including the Mercosur Partnership Agreement to build a trading zone for 700 million people.
European Commission President Ursula von der Leyen said that talks for a free trade deal with India ended on January 27 and she described the result as a massive outcome. The pact covers a market worth almost $27 trillion and India will stop taxing many goods from the EU immediately while most other taxes will eventually go away.
Canada reached China before Britain did as Prime Minister Mark Carney visited on January 16 to start a new partnership and Ireland’s Michael Martin went even earlier. German Chancellor Friedrich Merz is expected to reach the country in February.
Trade Pacts Fill the Calendar
The data exposes a trade gap that reached €732 billion in 2024 because the EU bought over €500 billion from China and sold less than half that amount back.
The €305 billion deficit makes European leaders uneasy as they watch their factories and power move toward the East. Trade between India and the EU was $136.5 billion in 2024 and both sides want to reach $200 billion by 2030.
Washington told the EU to stop taxing all American industrial goods and spend $600 billion on American factories as part of the Turnberry framework. European governments accepted the conditions because the United States buys more than 20 per cent of European exports and that makes accommodation the only viable road.
Germany and France make goods for a global market and China and South America offer hundreds of millions of people who want to buy things. Brussels closed pacts with Mexico and Indonesia in 2025 as part of an ongoing search for new customers.
Illusions of Power
European officials often talk about their desire for global autonomy and the need to protect their principles. A group of leaders emphasised sovereignty in a statement on January 6 and Von der Leyen said at the World Economic Forum that global shocks require a new kind of European resolve.
The language sounds strong but it fails to settle the actual situation where member countries do not give the Commission the power to use trade weapons against the United States.
European businesses pushed their governments to work with the Trump administration to avoid new fees and Britain follows the same logic. Starmer told business leaders in Beijing they were helping him build a new era for a sluggish economy as China’s economy grew at 5 per cent and Britain managed only 1.5 per cent in 2025.
Washington watches the European move toward Beijing with obvious concern and US Treasury Secretary Scott Bessent noted that the United States punished India for buying Russian oil only for Europeans to sign a trade deal with India anyway. Trump threatened Canada with 100 per cent taxes because of the China agreement.
Reading the Room
Europe appears to be building a global alliance through the trade pacts and Von der Leyen said the India agreement shows that cooperation brings great outcomes.
Brussels says Mercosur proves that trade works through negotiation but the logic meets a grounded reality. Europe acts as the junior partner in the transatlantic link and diversifying where they sell goods helps keep money coming in if Washington adds fees.
European governments look for growth within the limits of American security and the rush to finish the Mercosur talks was pushed by the changing winds in Washington. Pressure created its own momentum and the circumstances left few other options.
Future Implications
Kerry Brown of King’s College London says Starmer will count the trip a victory if he gets new investment and stays out of trouble.
This view applies to almost all European business deals where governments look for buyers and try to manage their bonds with both Washington and Beijing. The global trade card has limited value in discussions with Washington because European capitals will accept American demands to protect their economic and military safety.
China understands the calculation and India recognises the position and trade ministers from Brazil to Indonesia see the situation clearly. Starmer will meet Xi Jinping and go home to say he won and German and French leaders will do the same.
Agreements will grow and leaders will talk about shared values and the activities are normal ways to find more revenue. The gap between what Europe needs and how much power it really has keeps growing and Brussels is signing trade deals with a speed that uncovers a fundamental precariousness.
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