I've been living in Shanghai for a while now, and the view of the UK from here is... interesting. Back in London, the debate about China feels like a clash of abstract principles. Out here, it's a matter of looking at the scale of the shipping containers and the speed of the technology. It reminds me of the pace in a London M&A room — where the truth of a deal is found in the numbers, not the intentions — and realising that "disengaging" isn't a policy. It's a fantasy.
Hawks versus globalists
The UK's relationship with China usually falls into two camps. The hawks see every trade deal as a security leak and every BYD electric car as a Trojan horse. The globalists believe that if we just keep trading, everyone will eventually play by the same liberal rules.
Both are half right. How do you engage with the world's second-largest economy without becoming so dependent that you lose your ability to say no when it matters?
The polite middle is too polite
The moderate view advocates for engagement with caveats. We can cooperate on climate change and trade while being firm on human rights.
It's reasonable. It's also a bit naive. China isn't just engaging back. They're systematically dominating the supply chains that the UK needs for its own green transition. Nationalism and state-led industry are driving the success of Chinese EV brands currently flooding the UK market. Wishful thinking won't change that.
My take
We need to stop pretending this is a choice between good and bad engagement. We need the trade. But we shouldn't be naive about it.
We should embrace the competition where it helps British consumers — like cheaper electric vehicles. But we have to be much more aggressive about protecting our own strategic interests. We can't let polite cooperation be a cover for becoming a client state.
Why the relationship matters
The electric vehicle revolution in the UK is being powered by China. Brands like BYD and MG are offering high-quality cars for £15,000 less than their European rivals. If the UK wants to hit its net-zero targets, it needs these cars. We can't afford to be snobbish about where they come from. But we also can't ignore that this is hollowing out our own domestic manufacturing.
It isn't just cars. Solar panels, batteries, and the rare earth minerals required for modern tech are almost all processed here. The UK's energy goals are effectively underpinned by Chinese logistics. Values don't build wind turbines. Supply chains do.
What I'd suggest
The UK shouldn't run away from China. But it should stop being so reactive.
Welcome the competition in consumer goods to keep inflation down.
Aggressively diversify supply chains for critical minerals so we aren't held hostage by a single point of failure.
Internalise the realpolitik. China plays the game of nationalism and state-led industry very well. If we want to compete, we have to start thinking like an industrial power again, not just a service economy.
Keep an eye on the price of your next car or your home solar array. These aren't just consumer choices. They're the front line of Britain's most complicated international relationship.