August M
Following high-level talks this week, China has agreed to ease trade barriers on a key British export.
The move is being framed as a signal of improving relations after years of strain.
Trade talks revive
China will reduce tariffs on imported whisky to 5% from 10%, according to a statement from the State Council reported by Reuters. The change is due to take effect on February 2.
The decision follows a meeting in Beijing between British Prime Minister Keir Starmer and Chinese President Xi Jinping, where the two leaders sought to stabilise and reset ties.
Starmer’s office said the tariff cut would be worth £250 million ($344.13 million) to UK exporters over the next five years.
Whisky in focus
Scotch whisky was among the products discussed during the leaders’ talks. Both sides pledged closer cooperation in trade, investment and technology, Reuters reported.
China is a major market for British whisky. In 2025, the country imported $445.5 million worth of whisky, with 84% coming from the UK, according to Chinese customs data and Reuters calculations.
Industry figures have long argued that tariffs limited growth potential in one of the world’s fastest-expanding spirits markets.
Policy reversal
China had previously set a provisional 5% tariff rate on whisky imports in 2017. That arrangement expired at the start of 2025, automatically lifting the rate to 10%.
The new announcement effectively restores the earlier lower rate, reversing the increase introduced when the provisional policy ended.
Reuters noted that the shift comes as Beijing signals a willingness to use targeted tariff adjustments to support diplomatic and commercial objectives.
Broader implications
For Britain’s whisky industry, the cut offers a competitive advantage and reinforces China’s importance as an export destination.
For both governments, the agreement is being presented as an example of pragmatic engagement after years of political tension over security, investment and human rights.
While broader disagreements remain, the tariff reduction suggests that economic cooperation is being prioritised as a foundation for repairing the wider relationship.
Sources: Reuters
