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A Pivotal Week for UK Trade, Investment, and Industrial Policy

27 June 2025
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By David Taylor
Head of Programmes

This week saw a series of key announcements shaping the UK's approach to trade, investment, and industrial policy, highlighting the Starmer government’s ambition to boost Britain’s global competitiveness, particularly with a strong focus on Asia and other strategic markets.

On Monday, Business Secretary Jonathan Reynolds launched his much-anticipated industrial strategy, outlining plans to drive innovation, resilience, and job creation. With a commitment of £4.5 billion, the strategy targets critical sectors such as advanced manufacturing, green technologies, and strategic minerals. While broadly welcomed, questions remain over the specifics of implementation, funding clarity, and coordination with devolved regions.

Tuesday shifted the spotlight onto geopolitics, as Foreign Secretary David Lammy made a statement on the conclusion of the UK's "China audit". The government outlined a balanced approach, describing China as simultaneously a crucial economic partner and a strategic competitor, aligning closely with the position of its G7 allies. Central to this approach is the concept of "de-risking, not decoupling," aiming to safeguard national security while preserving key economic links. This carefully balanced stance is particularly significant for industries closely connected to China, including financial services, higher education, and technology. Next month, we will welcome Peter Wilson, the new UK Ambassador to China, to Asia House where he will provide further insights into the practical implications of the audit.

Rounding off the week, Prime Minister Keir Starmer launched a new trade strategy with the aim of positioning Britain as a leader in rules-based international trade, with an emphasis on exports, regulatory alignment, and digital trade, particularly in fast-growing regions such as the Indo-Pacific and the Gulf. It highlights the UK's strengths in soft power areas like education, legal services, green finance, and creative industries as essential tools for securing new trade and investment opportunities.

Reflecting the significance of these announcements, Asia House was pleased to welcome Liam Byrne, Chair of the UK Parliament's Business and Trade Select Committee, for a briefing with our corporate members. Byrne provided insightful commentary on the evolving trade landscape and emphasised the importance of cohesive and integrated policy approaches.

This has been a significant week for the UK's trade and industrial ambitions. The real challenge now lies in effectively delivering these policies to ensure genuine outcomes, reinforcing Britain’s position as an attractive destination for international investment, particularly from Asia and the Middle East.


Asia House is working with governments across Asia, the Middle East and the West, as well as multilateral organisations and the private sector, to drive commercial and political engagement around key issues in global trade. For more information on our research and programmes, please contact Charlie Humphreys, Asia House Director of Corporate Affairs at Charlie.Humphreys@asiahouse.co.uk