The UK and China have launched a "landmark feasibility study" into linking both countries' stock markets.
The idea would see companies able to list their shares on UK and Chinese markets.
The announcement, made by Chancellor George Osborne, comes as somewhat of a surprise given China's recent turmoil in the stock markets. However, the UK's intent on building economic links with China are far from secret.
"Whatever the headlines, regardless of the challenges, we shouldn't be running away from China," said Mr Osborne.
The Chancellor said he wanted to make the UK "China's best partner in the West".
The announcement comes just a day after Mr Osborne revealed that the UK would guarantee a £2 billion deal to secure Chinese investment in the Hinkley Point nuclear power station.