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Closer China-UK ties key to future prosperity in face of global challenges: Nobel laureate

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Closer China-UK ties key to future prosperity in face of global challenges: Nobel laureate

2026-01-30 17:26 Last Updated At:23:07

Closer collaboration and cooperation between the UK and China is absolutely crucial given the current set of global challenges, particularly as the world risks becoming more fragmented, according to Nobel Prize-winning economist Christopher Pissarides.

Pissarides, a Nobel Laurette who is also the Regius Professor of Economics at the London School of Economics, was speaking in an interview with the China Global Television Network (CGTN) on the sidelines of the recent World Economic Forum (WEF) in Davos, Switzerland.

The annual WEF meeting concluded in the Swiss Alpine town of Davos last Friday after drawing nearly 3,000 leaders and experts worldwide to discuss the most pressing global challenges under the theme "A Spirit of Dialogue."

Highlighting the significance of the key themes and topics at the forum, Pissarides emphasized the need for nations like the UK and China to build stronger relationships, while still respecting their different advantages.

"I think it's absolutely essential that they forge better relations. I agree with all the buzzwords and mottos of the World Economic Forum, so that we do need closer collaboration, (and) everyone will be better off. There's no doubt about that. As countries, we still have our comparative advantages on what we can do relatively better than other countries. But we can only enjoy even those if we collaborate," he said.

Pissarides also noted the importance of British Prime Minister Keir Starmer's visit to China -- the first by a British prime minister in eight years -- which also comes after the UK approved plans for the construction of a new Chinese embassy in London.

The Nobel Laurette stressed that moving beyond skepticism and advancing cooperation in a positive manner across several fields is the right direction for both countries, which will benefit both economies and improve the well-being of their respective peoples.

"What the Prime Minister is doing in Britain is absolutely right. I was pleased to see that China got approval to develop this amazing embassy that they were planning for London, which means that they do want to get closer and collaborate better. What I said about AI (artificial intelligence) before applies to relations here, too. I hope they get it right and they do it in a way that is positive both for our economies, the British and the Chinese, as well as the people generally, so that you remove any [disagreements], if there are any feelings of suspicions or that, which obviously pre-existed [until] now," he said.

However, Pissarides also noted some of the current headwinds and geopolitical challenges which pose risks to the international order, citing the uncertainty brought by the unilateral actions and protectionist policies of the present U.S. administration.

In the face of this, he emphasized that the spirit of cooperation must be upheld, and such efforts must extend beyond words to be matched with concrete actions.

"Britain, as you know, it's always been traditionally in the Western alliance, especially since World War II. I am very concerned about what I see, what I hear coming out of the United States, that the world is basically divided into three superpowers that grab a little bit here, a little bit there, and share it out -- I think that's a completely wrong approach in the spirit of collaboration. They are all talking it up, we are all supposing it, but in practice, we see more fragmentation and -- not quite destruction yet," he said.

Starmer arrived in Beijing on Wednesday to begin a four-day official visit to China, and held talks with Chinese President Xi Jinping on the following day, with both sides expressing willingness to develop a "long-term and stable comprehensive strategic partnership," and agreeing to deepen cooperation across various fields.

Closer China-UK ties key to future prosperity in face of global challenges: Nobel laureate

Closer China-UK ties key to future prosperity in face of global challenges: Nobel laureate

Gross domestic product (GDP) in the euro area grew by 1.5 percent in 2025, while the European Union (EU) economy expanded by 1.6 percent, according to data released on Friday by the EU's statistical office Eurostat.

The figures are based on quarterly seasonally and calendar-adjusted data. Growth momentum moderated toward the end of the year, with seasonally adjusted GDP in both the euro area and the EU rising 0.3 percent quarter-on-quarter in the fourth quarter of 2025.

On a year-on-year basis, GDP expanded by 1.3 percent in the euro area and 1.4 percent in the EU in the fourth quarter.

Among member states with available data for the fourth quarter, Lithuania recorded the strongest quarterly growth at 1.7 percent, followed by Spain and Portugal at 0.8 percent each, while Ireland was the only country to register a contraction, with GDP declining 0.6 percent.

Among the bloc's largest economies, Germany's GDP rose 0.3 percent quarter-on-quarter in the fourth quarter of 2025, while France expanded 0.2 percent and Italy grew 0.3 percent, Eurostat data showed.

ING Chief Economist Bert Colijn said the eurozone outlook remains clouded by multiple headwinds, including global uncertainty and weakening competitiveness, which could make trade a drag on growth this year. He added that structural challenges are being addressed too slowly, weighing on longer-term prospects, but noted that firmer domestic demand and planned investment could still support a modest pickup in growth in the coming quarters.

Markets widely expect the European Central Bank (ECB) to keep interest rates unchanged at 2 percent at its first monetary policy meeting of 2026, amid an uncertain global backdrop and lingering competitiveness concerns in the euro area.

Eurozone economy grows by 1.5 pct in 2025

Eurozone economy grows by 1.5 pct in 2025

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