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Not allies, not enemies: Britain's ties with China; China's Anta Sports to become top Puma shareholder

Not allies, not enemies: Britain's ties with China; China's Anta Sports to become top Puma shareholder

by AFP Staff Writers
Beijing (AFP) Jan 27, 2026

Britain's Keir Starmer is in China this week, marking the first visit by a UK prime minister in eight years and hailed by Beijing as a potential "new chapter" in relations.

It is the latest in a string of Western leaders seeking a rapprochement with Beijing, as US President Donald Trump turns on traditional allies.

Starmer hopes to boost trade after years of strained relations, but must balance this with security concerns raised in the UK over a potential threat posed by China.

Here are the three key questions surrounding the visit:

- Where do relations stand? -

London and Beijing enjoyed what they describe as the "Golden Era" a decade ago -- a time when then-prime minister David Cameron and Chinese President Xi Jinping famously enjoyed beers together at a British pub.

But relations soured since 2020, when Beijing imposed a national security law on Hong Kong and cracked down on pro-democracy activists in the former British colony.

Human rights abuses, alleged spying and cyber attacks, and China's perceived support for Russia's war in Ukraine also strained ties.

Nevertheless, China remains Britain's third-largest trading partner, though UK exports to the East Asian country plummeted 52.6 percent year-on-year in 2025, according to British government statistics.

And in December, Starmer said it would be a "dereliction of duty" not to engage with Beijing.

- Why is Starmer visiting now? -

Relations began to thaw soon after Starmer took the helm in 2024 following a closed-door meeting with Xi in Brazil in which the UK prime minister said Britain would look to cooperate with China on issues such as climate change.

But a protracted row over Chinese plans to build a vast new embassy in London complicated plans for Starmer's visit.

Beijing purchased the building, on the site of the former Royal Mint, in 2018, but opponents argued that the "mega embassy" will be used for espionage and pressure rights activists in Britain.

The plan was finally approved on Tuesday and made way for China's invitation to Starmer with a UK government spokesperson saying intelligence agencies have plans to "manage any risks".

Starmer's trip also comes as Britain faces a rift with its closest ally, the United States, following Trump's bid to seize Greenland and his brief threat of tariffs against the UK and other NATO allies.

With Trump increasingly tearing apart the global order, "China might not be an ally, but it is also not an enemy", Kerry Brown, director of the Lau China Institute at King's College London told AFP.

Facing a lacklustre British economy, Starmer will also be looking to seal trade deals to boost growth at home.

China has expressed hopes for the visit, with foreign ministry spokesman Guo Jiakun on Tuesday calling it an opportunity to "deepen practical cooperation with the UK, jointly opening a new chapter in the healthy and stable development of China-UK relations".

- What's on the table? -

Starmer will arrive with an entourage of industry executives hoping to promote British business through a UK-China CEO Council, a body that has lain dormant for years.

Created in 2018, the council once brought business and industry executives from both countries together when relations were in their "golden era".

Starmer is also expected to raise the case of Hong Kong media mogul and democracy supporter Jimmy Lai, a British citizen and founder of the now-shuttered Apple Daily tabloid.

The 78-year-old is facing years in prison after being found guilty of collusion charges in December under the new national security law.

Xi and Starmer are also likely to discuss Ukraine, where Beijing is accused of enabling Russia's invasion through its close economic ties to Moscow.

The visit will represent a "shift toward managed re-engagement rather than renewed strategic trust", according to Jinghan Zeng, an international relations scholar at City University of Hong Kong.

While progress could be made on climate change, trade, and people-to-people exchanges, "concrete outcomes will probably be modest", he said.

China's Anta Sports to become top Puma shareholder
Beijing (AFP) Jan 27, 2026 - Chinese athletic goods giant Anta Sports will buy a controlling stake in historic German sportswear brand Puma for $1.79 billion, a stock exchange filing showed Tuesday, as it expands its international presence.

Anta will buy 43 million shares for 35 euros apiece from the French billionaire Pinault family's Artemis group, the statement to the Hong Kong exchange said, giving it a 29 percent stake.

The price is a more than 60 percent premium to Puma's last close, according to Bloomberg data, and values the deal at 1.51 billion euros.

Anta said in the statement that the stake would "further enhance its presence and brand recognition in the global sporting goods market", including China.

"We believe Puma's share price over the past few months does not fully reflect the long-term potential of the brand," Anta chairman Ding Shizhong said.

While the statement said Anta had no plans to launch a full takeover of Puma, it will "carefully assess the possibility of further deepening the partnership between the two parties in the future".

Artemis said the sale would allow it to "redeploy its resources to new value-creating sectors".

The deal is expected to close by the end of the year, though it is subject to regulatory approvals, and the company will buy shares with cash.

Anta declined to comment on the deal when contacted by AFP.

The firm, based in China's southeastern Fujian province, is one of the world's largest sportswear companies.

Founded in 1991, it is the parent company of many global brands through its subsidiary Amer Sports, including Wilson, Arc'teryx and Salomon.

Anta closed its acquisition of Finland-based Amer in 2019, leading a consortium in a deal worth about $5.2 billion.

It also controls rights in the vast Chinese market for foreign sportswear firms including Fila and Descente.

Anta has become the world's third-largest sportswear brand following Nike and Adidas, according to data analytics firm Euromonitor International.

Puma, however, has been struggling with weak demand in recent months and saw sales decrease more than 15 percent in the third quarter of last year.

CEO Arthur Hoeld, who was appointed last year, has said the brand had become "too commercial" and was undergoing a "reset" last year to improve on brand heat, distribution quality and product offering.

Hoeld told investors in October that the company's goal was to "become a top three sports brand in the future again".

He deemed 2026 a "year of transition", vowing a return to growth in 2027.

Puma is set to release its 2025 full-year financial results on February 26.

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