UK intends to remain open to Chinese investment while protecting national security: Trade minister
In an exclusive interview with CNA’s Roland Lim, British Minister of State for Trade Anas Sarwar discusses London’s push to balance its relationships with the United States and China while strengthening ties with Southeast Asia.
An aerial picture shows freight containers on the dock as ship-to-shore cranes load a cargo ship at the container terminal of Southampton Docks in Southampton on the south coast of England on April 16, 2026.(Photo: AFP/Ben Stansall)
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MANILA: Britain intends to remain open to Chinese investment and partnerships while prioritising national and economic security where needed, UK Minister of State for Trade Anas Sarwar said.
Speaking to CNA on Wednesday (Sep 23) following the Association of Southeast Asian Nations (ASEAN) Economic Ministers’ Meeting in Manila, Sarwar discussed Britain’s push to balance its relationships with the United States and China.
Southeast Asia is also a key focus, as Britain seeks to deepen trade and investment ties with the region amid heightened global trade tensions and tariffs.
BALANCING TIES WITH US & CHINA
On China, Sarwar said security concerns did not mean shutting the door on economic ties.
“Where there is a national security issue, of course, being robust on defending our national security and our economic security. But that doesn’t mean closing ourselves off to Chinese partnership or Chinese investment,” he said.
“That is something that we do want to be open to, and we are open to.”
Britain also wants to strengthen ties with the US, seeking the “best relationship possible” on tariffs and going further on tariff-free trade, while continuing the government’s reset of relations with the European Union.
Sarwar said governments around the world are grappling with protectionism and pressures on domestic industries, supply chains and jobs.
He added that countries need to protect individual industries while continuing to build partnerships and support dialogue and open trade, pointing to ASEAN as a key part of Britain’s efforts to broaden its economic relationships.
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DEEPENING TIES WITH SOUTHEAST ASIA
Total trade in goods and services between the UK and ASEAN reached £62 billion (US$83 billion) in 2025, up 17.4 per cent from the previous year, according to a joint media statement from the ASEAN Economic Ministers-UK consultation on Tuesday.
Sarwar, who was appointed to the trade post in July, said Britain wanted to diversify its trade relationships while maintaining its traditional ones.
He said Southeast Asia offered opportunities in industry, digital technology and artificial intelligence, while Britain and the region faced shared challenges in energy generation, transmission and grid infrastructure.
“I don’t think our relationship with ASEAN should be viewed … as an alternative for other trade agreements in the UK. I think it has to be because we really value this relationship,” he said.
He added Britain wanted the relationship to work in both directions: increasing UK exports and investment into Southeast Asia, while bringing more ASEAN products and investment into Britain.
In the Philippines, Sarwar signed an agreement with the Department of Finance on Wednesday, giving eligible government projects access to up to £5 billion in UK Export Finance support.
He said the financing could support Philippine infrastructure development while creating opportunities for British supply chains and expertise in areas such as legal and financial services, digital services and clean energy.
“I want this to be a two-way relationship,” he said.
“I want to be a trade minister that comes to these talks and these agreements and focuses on the outcomes and maximises the opportunities so it’s a win-win for both sides.”
PROTECTIONISM NOT THE ANSWER
Sarwar was also asked about global steel overcapacity, particularly in China, and concerns that goods could be redirected through Southeast Asia as countries impose higher trade barriers.
Excess capacity can drive down steel prices and put pressure on domestic producers. Higher trade barriers can also divert exports to markets with fewer restrictions.
Sarwar said governments may need to protect important domestic industries, including steel, automotive and energy.
Britain introduced a new steel trade measure in July that reduced tariff-free import quotas as it sought to protect domestic production. The government has said persistent global overcapacity has severely affected the UK steel industry.
But Sarwar said the response should extend beyond measures taken by individual countries.
“I don’t think protectionism is the answer for the UK. I don’t think protectionism is the answer for ASEAN and indeed for many economies across the globe,” he said.
“If we can get greater coordination … and try to act more in lockstep with our partners across the globe when it comes to, for example, steel policy as well as other issues. I think it is an important way forward.”
Sarwar said Britain also had to make the case at home for keeping trade open.
“We have to demonstrate to our population why this open approach to trade is right for the national interest, right for UK jobs, right for UK living standards, and is important for every part of our country,” he said.
Source: CNA/mp(ca)
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