Be practical on the 'golden decade'

Chinese President Xi Jinping and his wife Peng Liyuan arrive in the UK this week for a four-day state visit

With Chinese President Xi Jinping about to embark on a state visit to the United Kingdom, British and Chinese officials are talking of a "golden decade" in bilateral relations. Ties have improved in recent years and economic interests have converged. However, the advancement is fragile, with uncertainty still surrounding whether the promised economic benefits of closer relations will materialize.

The recovery in UK-China ties has been impressive, given the nadir they dipped to in 2012 after Prime Minister David Cameron and the then deputy prime Minister Nick Clegg met privately with the Dalai Lama. China condemned the decision as a "serious interference" in its internal affairs.

Britain has since redeemed itself in China's eyes by focusing on commerce. This effort has been led, not by the Foreign and Commonwealth Office, but by the Treasury under George Osborne. The UK chancellor made a five-day visit to China in September, when he marketed the UK as China's "best partner in the West". In March, he also overrode concerns voiced within the FCO and by the UK's closest ally, the United States, to ensure Britain was the first European country to announce it planned to join the China-led Asian Investment Infrastructure Bank.

The political environment in the UK is certainly more conducive for fostering closer ties with China, and Xi's trip will help to cement the upturn in bilateral relations.

Economic ties between the UK and China are also growing in importance. China's transition to a services and consumption-led economy promises opportunities for UK companies in the areas in which they are most competitive, such as luxury goods, pharmaceuticals, business and financial services.