Analysts claim that developed economies, such as the United States, have taken advantage of China's lack of such a status to impose trade measures more easily on Chinese exports.

China and Britain will also strengthen cooperation in taxation policies, statistics, energy, finance and civil aviation, reads the statement.

Premier Wen Jiabao welcomes members of the United Kingdom's largest-ever delegation to China ahead of talks at the Great Hall of the People in Beijing on Tuesday. [Xu Jingxing/China Daily]

Words of Warning

Outside of the Great Hall of People in Tian'anmen Square, the flags of China and Britain flew side by side - and it is in this fashion that the two nations have vowed to push global economic recovery.

"The priority (for the world) is to enhance macroeconomic policy coordination, oppose all types of protectionism and avoid economic issues from being politicized to benefit all-round recovery of the world economy," said Vice-premier Wang Qishan.

However, experts warn the recovery could be jeopardized by the quantitative easing policy of the US as it may push up inflation in the developing countries and cause chaos in the financial markets.

"The large amounts of capital into the emerging market economies will lead to rising inflationary risks," said Wang during the China-UK dialogue.

The US Federal Reserve has released its latest quantitative easing policy by buying $600 billion in government bonds to keep borrowing costs near zero and prop up the ailing economy. A number of countries have expressed concern about the expected liquidity boom.

China and Europe may discuss the impact of the quantitative easing at the G20 summit in Seoul.