| Author (Person) | Godement, François, Stanzel, Angela |
|---|---|
| Publisher | European Council on Foreign Relations (ECFR) |
| Series Title | China Analysis |
| Series Details | September 2016 |
| Publication Date | September 2016 |
| ISBN | 978-1-910118-87-0 |
| Content Type | Journal | Series | Blog, News |
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In contrast with gloomy assessments from Japan amongst others, China sees Brexit as a source of major opportunities for China’s economy and international standing, according to a new report from ECFR published in September 2016. China and Brexit: What's in it for us? - a special issue of ECFR’s China Analysis series - looks at the first published Chinese commentaries in the wake of the Brexit shock in June 2016. While there are nods to concerns around increased uncertainty and the potential loss of the UK as a gateway for EU investment, Chinese authors are markedly more upbeat than their east Asian neighbours in terms of their prospects after Brexit. Chinese authors seem to concur with the view of Brexit supporters that a more independent UK will be better able to agree a mutually beneficial free trade deal with China – a prospect officially confirmed as a possibility by China’s Ministry of Commerce. While such a trade deal would have intrinsic economic benefits – with Chinese expectations that Britain will remain a large economy even after Brexit - it would also likely increase the attention Britain gives to China more broadly, which is where the real benefits are seen. According to Chinese sources, such a deal would make the UK more dependent on China and therefore more likely to advocate for China’s interests in international fora. Li Xiaopeng argues that this dependence will lead Britain to promote renminbi internationalisation 'even more', while Zhao Hongwei sees post-Brexit UK as 'the leading voice' supporting China’s ongoing bid for market economy status (MES). The possibility of the UK lifting an embargo against arms exports to China is another area where Britain’s new-found independence from Europe – and dependence on China – could bear fruit for Asia’s largest military actor. A divided Europe is seen as an additional opportunity for China. Chinese scholars expect that Brexit will weaken the EU’s position on its own values, leading to a softer European posture on Chinese human rights abuses. Economic competition between the UK and EU for Chinese investment is also seen as likely to lead to better terms for Chinese companies. London’s recent delay of the £18 billion Hinkley Point C nuclear power plant out of concerns about China’s 30 percent stake in the highly sensitive nuclear project is viewed as an exception in this sense. |
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| Source Link | Link to Main Source http://www.ecfr.eu/publications/summary/china_and_brexit_whats_in_it_for_us7112 |
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| Countries / Regions | China, Europe, United Kingdom |
