By: Elena Grace Flores
Brexit orBritain’s exit from the EU has brought surprising actions from the British government. Perhaps, they are just weighing trade opportunities to retain a healthy economy after it slumped a bit after Brexit. Exploring free trade with China can be misinterpreted as showing rebellion to EU after gaining their freedom from it but others put it as their way of learning the hard way. Perhaps they wanted to experience China’s unfair trade practices, mass produced sub standard products and sometimes dangerous product contents. On the other hand, they are also on there way to have some talks with China’s rival, India – another giant in Asia, but it is not known yet what will come out from that. Clearly still in the exploration stage. Read this:
The Inquirer wrote: LONDON, United Kingdom — Britain’s finance minister warned Brexit would cast a “shadow” over the world economy but said he was eyeing a free trade deal with China in interviews with the BBC and Sky News on Sunday. Speaking on the sidelines of the G20 meeting of leading world economies in Chengdu, China, Philip Hammond told Sky that the vote to leave the EU was “not the only shadow the world economy faces”. “There is going to be uncertainty about the outcome hanging over the world economic outlook for perhaps the next couple of years,” Hammond said.
It added: China President Xi Jinping before the referendum had said that he hoped Britain would remain in the 28-nation bloc to promote the “deepening development of China-EU ties.” Senior figures from some of Britain’s biggest financial services companies, including HSBC, Virgin Money, the London Stock Exchange and Standard Life were travelling with Hammond. Prime Minister Theresa May also discussed a trade deal with Australia in a phone call with Prime Minister Malcolm Turnbull earlier this month. Foreign Office junior minister Alok Sharma was also travelling to India on Monday on his first visit since his appointment. “Britain is open for business and thriving on the world stage. We want the strongest possible relationship with India,” Sharma said.
By: Elena Grace Flores
There seems to now have more clarity on the Brexit episode on how it came about – with supporters saying that the EU has been regulating the country and dictating what to do and what’s not. Shortly after their exit, they are looking at going back to the negotiating table with China that has been proposing a free trade relations for both countries. This of course is not permitted under the EU. Read this report for the details:
Forbes wrote: This is an interesting turn up for the books, Phillip Hammond, the new Chancellor of the Exchequer, has said that it would be a good idea for Britain to pursue a free trade deal with China. He also seems to be talking about it the right way around – we’d just love to have more Chinese investment for example. But what really interests about this is that China has been asking for a free trade agreement with the European Union for some time now. And given that the people running the EU don’t really believe in free trade at all, rather in a customs union or zollverein, they’ve been putting them off. It’s entirely possible therefore that post-Brexit Britain will have a free trade agreement with China before the EU does. To our benefit, of course.
Chancellor Philip Hammond has begun discussions with China on an ambitious free trade deal which could 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. That is despite a short term economic shock from leaving the European Union. Of course, I don’t think that it’s despite Brexit, it’s obvious that it’s because of Brexit. Before we decided to leave (and technically, even now) it was illegal for Britain to try to negotiate a trade deal on its own.
It added: Hammond is looking at the right part of this as well: “We already have a strategic partnership with China. “We have hugely increased our trade with China, investment both by British companies into China and by Chinese entities into the UK. “That’s about as far as we can go while we are members of the European Union. “But once we are out of the European Union then I have no doubt on both sides we will want to cement that relationship into a firmer structure in a bilateral way that’s appropriate. And there’s an easy way to negotiate this too: Senior government sources have told me that officials are looking at New Zealand’s free trade agreement with China which took four years to negotiate and came into effect in 2008.
Take that text, cross out “New Zealand” and replace with “United Kingdom” where appropriate and we’re done. We already know that China’s happy with the text after all. The European Union has problems with such a deal: