The political viability of lifting UK-imposed sanctions on Chinese firms remains low. Many of the firms listed above have been sanctioned under Russia (sanctions) (EU Exit) Regulation 2019, with assets frozen in an attempt to target and halter Russian supply chains, mainly as China has been used to circumvent previous sanctions. Russia-China trade reached new heights in 2024, reaching $237 billion, surging from just $147 billion in 2021, underpinning its significance in Moscow’s military-industrial complex.

UK-China relations are currently in a tricky place. The Conservative party, particularly with Rishi Sunak and his backbenchers, significantly deteriorated relations due to bilateral disputes over China. These include a 2021 attack on the Electoral Commission, which leaked voter data, and personal attacks allegedly carried out by the APT31 group, on Sir Iain Duncan Smith, Tim Loughton, Lord Alton of Liverpool, and Stewart McDonald, causing the UK to announce sanctions on Wuhan Xiaoruizhi Science and Technology Company, along with two individuals, Zhao Guangzong and Ni Gaobin, who are linked to APT31.

Furthermore, ongoing changes in the United States will also complicate matters, as the UK will continue to appease the US to maintain beneficial trade relations. This dynamic is particularly significant in the light of Trump’s new barrage of tariffs, seeing the UK imposed with a 10% baseline, and 25% for cars. Kier Starmer has stated he wants to overturn these US tariffs as part of a wider ‘economic deal’ with the Trump administration.

Kier Starmer and Rachel Reeves have been seeking to enhance relations with China, as evidenced by her visit to China and subsequent talks with He Lifeng, co-hosting the UKChina Economic & Financial Dialogue. This dialogue aimed to restart discussions on financial and capital markets, building on the ‘commitment to explore deeper economic cooperation’ between Prime Minister Sir Keir Starmer and President Xi, made during last year’s meeting in Brazil. Their government have also backed a new plan for Beijing’s new, controversial embassy in London. This could indicate a shift coming.

The most recent wave of sanctions in February 2025 targeted 107 entities in further efforts to disrupt Putin’s supply chains. Foreign Secretary David Lammy stated that these sanctions were “the largest in almost three years” and “underscores the UK’s commitment to Ukraine”. However, this new wave of sanctions comes at a tricky time for the UK, where they seek to balance their drive for economic growth with lingering concerns over China’s policy, including their support for Putin. This is further complicated by the US’s more confrontational approach to Beijing, especially with the looming rise of another potential prolonged trade war between the two giants.

Kier Starmer came out on 27th March reaffirming that “now is not the right time to lift sanctions against Moscow”, maintaining that sanctions will remain in place or increase until the unconditional withdrawal of Russian troops from Ukraine. Any significant change in the sanctions would likely be met with strong backlash from MPs in parliament, especially given the UK’s strong stance on Ukraine and their continued support for them. In late February and March 2025, the UK increased their support for Ukraine, including a new £2.26 billion loan to bolster Ukraine’s defence capabilities. Any lifting of sanctions on Chinese firms would be counteractive to the UK’s continued financial support.

The UK has joined the EU and the US in targeting Chinese firms that supply dual-use goods to Russia, supporting Moscow’s military-industrial complex. Given this backdrop, it is unlikely that the UK would unilaterally remove sanctions without a significant policy shift. Lifting sanctions would likely have wider geopolitical effects, putting strain on the UK’s relationship with the EU, G7, and G20 partners. This point becomes even more pertinent in the light of Trump’s tariffs, as unless Kier Starmer can strike a free trade deal with the US in the coming months, the UK will likely seek to expedite negotiations aimed at resetting their relations with the EU. A summit on the 19th of May 2025 is already set to take place between the EU and the UK, with the goal of establishing a more robust and cooperative post-Brexit framework. A strengthening of relations between the UK and the EU would further reduce the likelihood of lifting sanctions.

It therefore remains the case that for Chinese firms sanctioned by the UK government, the only current way to be delisted is by proving they no longer supply Russia, have cut ties with any previously sanctioned individuals, and/or have undergone an independent audit. In such cases, there may be grounds for reconsideration.