UK, China discuss potential trade deals
(27 July 2016 – China) Following the country’s referendum to leave the European Union, UK Chancellor Philip Hammond has begun discussions with China on a free trade deal which may see greater access for major Chinese banks and businesses to the UK economy.
The Chancellor told the BBC it was time to explore "new opportunities" across the world, including with China, one of the UK's biggest inward investors.
"What we now need to do is get on with it in a way that minimises the economic impact on the UK economy in the short term and maximises the benefit in the long term," Hammond said.
Hammond revealed that Britain is keen on a free trade deal following reports from Chinese state media that the country’s Ministry of Commerce desire to cement a partnership earlier in July.
It will be the first time the UK has embarked on such a major project with the second largest economy in the world. Any deal will raise concerns about cheap manufactured goods entering the UK more easily.
In return for greater access to the UK for its manufactured products and investment, China would reduce barriers to Britain's service industries like banking and insurance as well as UK goods.
That would be an important source of export income for Britain.
"The mood music that I have heard here is very much that this will mean more opportunity for countries like China that are outside the European Union to do business with Britain," Hammond said.
"And as Britain leaves the European Union and is not bound by the rules of the European Union perhaps it will be easier to do deals with Britain in the future."
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