Treasury chief George Osborne announced the changes to simplify and speed up applications as he led a British trade delegation to China.
Chinese visitors heading to Europe frequently choose not to stop in Britain because they have to apply for a separate visa from much of the rest of Europe, which comes under the passport-free Schengen zone.
The Treasury said the changes will reduce the need for Chinese visitors to the European Union to submit separate visa applications for Britain. Selected Chinese travel agents under a pilot scheme will be able to apply for British visas by submitting just the EU's Schengen visa form.
It also said a new 24-hour fast visa service will be available starting next summer.