24 June 2016
Brexit – What next for doing business with China?.
In light of the EU Referendum result for Brexit this morning, the UK is about to go through significant changes to the political landscape, and so will UK-China relationship.
“It is too early and too soon to fully understand the impact of this decision on trade and investment between the two countries”, commented Ting Zhang, CEO of China Business Solutions as the company’s response to the Referendum. “In the short term the uncertain economic environment may lead to hesitation and decrease of Chinese investment into the UK, as UK will be seen to have lost its position as “Gateway to Europe”. UK being a small market on its own has not been so appealing to many Chinese investors”.
“There will also be issues with access to talent and skills shortage for Chinese companies expanding operations in Britain and especially across Europe”, Ting continued, “However, a weaker British Pound will help export and make UK more competitive for Chinese tourists and students. British Pound assets will also be cheaper for Chinese investors in financial and property sectors”.
The longer term impact on trade and investment will be hard to assess and will depend largely on UK’s ability to negotiate its individual trade deal with China, Ting said. “In Chinese, the word for “crisis 危机”, also bears the meaning of “opportunity“. UK businesses should take this opportunity to look for new markets such as with the BRIC economies, and China may become even more important market for many UK exporters.”
Ting concluded by saying “I want to reassure you that the team at China Business Solutions are committed to continuing to support you in your journey of doing business in China, be it to sell into the world’s 2nd largest economy, source from lower cost manufacturers or to attract investment and financing”.
Please let us know if you have any questions or concerns. We are always delighted to hear from you, and we are here to help you succeed during this important period of change.