With the successful handover of Hong Kong in 1997, the UK under the newly elected Labour government sought to engage in a ‘new chapter’ of relations with China. Despite much effort, the stated goal of a ‘thick relationship’ was not fully realised during this time. To understand the process more closely, this article focuses on the policies adopted by the Labour government under Tony Blair with a focus on his trip to China in October 1998. Using recently released Cabinet Office documents, it shows how perceptions played an important role in forging an approach that was too narrow in scope to address the more difficult challenges that emerged such as human rights and the NATO bombing of the Chinese embassy. The conclusion is that these policies were not sustainable to set the path towards a deeper partnership.