We have a lot more we want to do together in the fields of trade, investment, environment, education, and global foreign policy issues like Iran and Sudan.

We're doing a lot together on culture, too. We have just opened up two fabulous exhibitions with China in Beijing, both of which I'd recommend to your readers. The first is the exhibition of JMW Turner paintings from the 18th century at the National Art Museum in Beijing--until July--a first in China for our most famous and innovative national painter. The second is an exhibition of photographs taken in China in the late 19th century by Scottish photographer John Thompson, at the Millennium Museum- the clarity of the images, and the window it gives onto another time, are remarkable. The level of exchange between China and the UK is now high. But there is also plenty of room for it to grow.

Why China Matters

Viewed in the broadest terms, over the next four years, China will be crucial to the UK in several areas:

UK national prosperity:

China's huge economic potential means business, educational, scientific and cultural opportunities for the UK -and big challenges for our competitiveness.

Globalization:

China is now vital to restoring and maintaining global economic stability. China's own development will require further economic reform to ensure it is sound and sustainable. At the 2008 Washington G20 Summit, China signed up to calls for reforms to strengthen financial markets and regulatory regimes to avoid future crises. But the transition will not be easy, and meanwhile Chinese demand for scarce resources is increasing global pressure on them.

Climate:

Chinese policies to reduce emissions, as part of an ambitious Copenhagen agreement, are crucial to maintaining global temperature rises from reaching dangerous levels.

Development:China's rapidly growing impact in the developing world means that its importance is comparable to that of our G8 partners for delivering our poverty reduction objectives and ensuring debt sustainability.

International Security:

China is a permanent member of the UN Security Council with full veto powers and it is playing an increasingly active role in the UN. Its political influence is growing, not only in East Asia but also across the world in areas of challenge for international peace and security (such as Africa and the Middle East). Chinese cooperation is essential if we are to achieve unified international approaches to combating terrorism and proliferation, and to preventing and reducing conflict.

The International System:

China's growing economic and political impact is one part of a complex shift in global power. We need to work together with China to reform international institutions if they are to remain relevant and effective.

(Source: The UK and China: A Framework for Engagement)