An important week for international trade on both sides of the ‘pond’, as the British government sets out its legislative agenda for the coming parliamentary session – expected to feature EU ‘reset’ items and new procurement rules – and US President Donald Trump visits Beijing to talk trade and Iran.
Trump meets Xi
The delayed meeting between US President Donald Trump and Chinese President Xi Jinping will take place this week, as Trump is set to visit Beijing on Thursday (14 May) with a delegation of top officials and business leaders.
The ratcheting tariff spat between the two nations, which dominated global trade last year with import rates introduced by both administrations topping 100%, concluded with a one-year truce in October. This suspended stricter export controls Beijing was set to introduce on critical minerals, several tariffs and shipping fees introduced during the dispute.
The tit-for-tat tariff spat between the two nations ended last year after Beijing threatened to increase export controls across a range of critical minerals. Experts have suggested that the US still has significant leverage given China’s export surplus.
University of Hong Kong economist Tang Heiwai told the BBC that, amid weak demand from domestic consumers and continual investment in its manufacturing sector, China “will need the US”.
“There's no single country as big as them as a consumer market.”
Beyond the trade truce, the leaders are expected to discuss the Iran war, with Trump reportedly set to pressure Beijing to limit its support of Iran.
Reports suggest that the Chinese government privately warned banks to limit their exposure to five oil refineries already sanctioned by the US. However, Trump is expected to go further during this week’s meeting, with an official anonymously telling the FT, he’ll raise the issue of China supplying Iran with dual-use goods and potential arms exports.
King’s Speech opens parliament
Following a bruising day at the polls after last week’s local elections – you can read more analysis on that here – the Labour government will set out its legislative agenda as parliament reopens.
Fresh off his successful speaking stint in the US’ legislative chamber, King Charles III will deliver the government’s series of planned laws on Wednesday (12 May).
For trade, there’s anticipation that EU alignment will feature as part of the ongoing reset of relations with Brussels. The government has already said it plans to transfer some EU single market rules onto the UK statute book, with those pertaining to food standards expected to facilitate an upcoming sanitary and phytosanitary agreement with Brussels.
In possible good news for UK businesses, the Public Procurement (British Goods and Services) Bill, which would compel UK public bodies to purchase more key supply chains components from small- and medium-sized UK firms could also be announced.
British Steel nationalisation
A late addition to Wednesday’s legislative agenda, as the government announced plans to fully nationalise struggling manufacturer British Steel.
In a speech delivered this morning (11 May), prime minister Sir Keir Starmer said that following a public interest test, government powers take British Steel into “full ownership”. This follows the takeover of the manufacturer’s Scunthorpe plant last year.
He added that he believes “public ownership is in the public interest".
This sentiment was echoed by Steel UK director general Gareth Stace, who said:
“Maintaining domestic production capability for British Steel's products is essential not only for economic growth but also for our national security and resilience.”
Maintaining UK steelmaking capacity has been linked to safeguarding economic security by the Labour government.
Business and trade secretary Peter Kyle emphasised the sector’s need for stability:
“This legislation would allow us to ensure stability for British Steel’s workers, suppliers and customers and avoid damaging disruption to crucial supply chains, while we consider options for the site’s future.”
The EU ‘reset’ – one year one
There’s still time to secure your place on the next instalment of our public webinar series, Global Trade Live.
Ahead of a summer summit between EU and UK and the five-year review of the Trade and Cooperation Agreement, this webinar will examine the state of play since the May 2025’s Leaders’ Summit to instigate a ‘reset’ of relations.
Host and Chartered Institute head of content William Barns-Graham will be joined by Chartered Institute experts, plus figures from the Confederation of British Industry and the EU’s delegation to the UK, to evaluate how best to strengthen trade ties.
You can still join that event, held at 2pm tomorrow (12 May), by following the instructions here.
Elsewhere in the headlines:
- Fresh concerns that the US/Israeli war with Iran will drag on, as Trump dismissed Iran’s response to the US peace proposal
- European Parliament’s trade committee chair Bernd Lange is optimistic that talks in the coming weeks to agree to implementation of the EU-US trade deal would be completed before Trump’s Independence Day ultimatum
Also coming up this week:
- Monday: S&P Global/REC report on jobs published
- Tuesday: EU defence ministers meet
- Wednesday: IEA and OPEC monthly oil reports
- Thursday: King’s Speech debate begins in the Commons
- Friday: Council of Europe foreign ministers meet to discuss migration and ECHR reform
- Saturday: Peter Kyle, Liz Kendall and Wes Streeting address Progress conference
- Sunday: Elections in Cape Verde and Andalusia, Spain
