This chapter focuses on Thatcher’s 1982 visit to China to discuss the Hong Kong question and to promote British commercial interests. Coming as it did three months after Britain’s victory in the Falklands War, Thatcher journeyed east with the intention of extending British rule in Hong Kong beyond 1997. Thatcher’s negotiating tactics were to play up the ‘confidence card’ so as to justify continuing British administration, and to stress Britain’s moral obligations to Hong Kong people, while dismissing Hong Kong’s economic value to Britain. Although Deng Xiaoping made it plain that sovereignty was not a matter for discussion, the visit succeeded in securing his agreement to open diplomatic talks on Hong Kong’s future. The second part of the chapter examines how Thatcher seized every opportunity to advance British commercial interests in China. The construction of the Guangdong nuclear power plant, which involved China, Hong Kong, and British companies supplying the conventional island and other equipment, was one such example. By 1982, Anglo-Chinese trade had not increased to the target level envisaged by the 1979 economic cooperation agreement. This raised a few question marks about Britain’s competitiveness in the increasingly globalised economy.