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This report traces the developments in politics，economy，society，and foreign policy in the United Kingdom from 2010 to 2013，and makes special analyses on major events in the first few years of the Coalition Government，such as China-UK relations，European policy，adjustments in defence policy，constitutional reforms，debates on Scottish independence referendum，and the London Olympic Games.Special attention has been given to the impact on the UK of the global financial crisis and European Sovereign Debt crisis.The book also focuses on the power shift in the international system and its impact on the evolving British power，its status and role in the world，as well as new characteristics and trends that have emerged in the China-UK relations.

At this phase，the UK economy is characterized by long-term recession and a slow recovery.The UK economy has long been excessively dependent on finance and real estate industry，while the development of the real economy relatively lagged behind and the manufacturing industry experienced continuous decline.Such a development model is difficult to sustain and transform.Furthermore，the international economic environment and the high level of deficit of the United Kingdom exacerbate the difficulty of such a transformation of Britain’s economic structure.

In this context，the first postwar Coalition Government was formed after the 2010 general election.Notwithstanding the incongruity of domestic and foreign policies between the Conservatives and the Liberal Democrats，the Coalition，in order to tackle the difficult fiscal situation，has adopted a harsh shock-therapy-styled austerity programme，which gives priority to reduction in deficit and government debt and to prevention of systematic macroeconomic and financial risk.For about three years，the austerity policy on one hand facilitated the stability of the macro-economy and sustainable development in the United Kingdom,while on the other hand，it undermined the traditional notion of British Welfare State and aggravated the gaps between different social classes.

Since the global financial crisis，the major parties in the United Kingdom have continued to take the middle ground in terms of the ideas and policies of British political and economic governance，in an attempt to gain support from all social groups.David Cameron presented the concept of the“Big Society”，which has become a key policy notion in the 2010 Conservative general election manifesto and in the following Coalition Government.Since the 2010 general election，Ed Miliband，who favours a more traditional ideology of the Labour Party，is elected as party leader.He argues that the Labour Party should go beyond the legacy of“New Labour”and be concerned more about the interests of the lower classes.After 2012 the Labour Party proposed to dedicate itself to the idea of“One Nation Party”.Against the wish of a number of analysts，three years after the 2010 general election the radical reform in British politics which was expected together with the rise of the“third force”did not occur.The priority in deficit reduction of both parties in the Coalition Government，along with the discrepancies of ideas and the constraints on the efficiency of policy-making has all hampered substantial changes in British politics.The pace of British constitutional reforms tends to be much more moderate and incremental compared with that in the New Labour era.The development of Scottish nationalism and the initiation of the Scottish independence referendum also bring forth the debates over whether the Labour government’s constitutional reform on devolution encourages nationalism and will finally lead to the disintegration of the United Kingdom.

Facing the power shifts in the international system and the challenge of the Eurozone crisis，the Coalition Government，while tackling the economic problems，has to think seriously about what power and role the United Kingdom has in the international system，and make it a strategic goal to secure the United Kingdom’s great power status.In the debates on the UK’s place in the world，the Coalition Government endeavours to adapt to a more“networked”world，orientate itself as a global great power，and emphasise the importance of emerging powers in British foreign policy while maintaining the special relationship with the United States and the European Union.On defence policy，the new Strategic Defence and Security Review（SDSR) emphasises the idea of“using the minimum number，providing both quality and effectiveness”.

In Sino-British relations，the Coalition Government has given priority to business，trade and cultural exchange so as to build a“partnership for growth”.But at the same time new changes and issues have also emerged.This originates not only from the adjustment in the Coalition Government’s policy on China，but also from the international contexts，particularly from the impact of the prolonged Eurozone crisis，the rise of Asian powers and the American and European strategic pivot and repivot to the East.For the last three years，the British government has underlined“economic diplomacy”in its foreign policy，while staying continuous and pragmatic in its relations with China on the whole.China-UK bilateral relations have been augmented in both scope and depth，especially in the fields of business and people-to-people exchange. However，Prime Minister David Cameron and Deputy Prime Minister Nick Clegg’s meeting with Dalai Lama in May 2012 has had an adverse effect on the development of China-UK political relations.