Brexit is popular is China. The overwhelming opinion being that it is a great opportunity to create a free trade agreement with the United Kingdom.
After the speed with which the UK sealed the recent arrangement with Switzerland, is there optimism that a trading pact can quickly be established with the Chinese Government?
“The benefit of a post-Brexit agreement with China is further boosted by the country’s declining relations with other trading nations,” explains Domenica Di Lieto, CEO of Chinese marketing consultancy, Emerging Communications.
“The problems exporters from the United States have within President Trump’s trade policy are well documented, but now Canada and Australia are already experiencing similar issues thanks to various points of contention with China.”
China Makes a Stand
“Canada’s arrest of Huawei Chief Financial Officer, Meng Wanzhou, for extradition to the US created a massive public outcry in China, and is seen as unfair and hypocritical behaviour by the Canadian government leadership.”
“Huawei is considered a national beacon of technological success whose market leading technology has been used as a shining example of the ‘new generation of made in China’”
For some Chinese consumers the link between Huawei’s overseas success and sudden backlash from foreign governments seems too much of a coincidence.
“Canadian premier Trudeau, says he cannot stop legal process taking place, but is said to have tried to stop corruption proceedings against engineering giant SNC-Lavalin, which led to the resignation of Attorney General Wilson-Raybould. Now some Canadian exports to China are not being cleared for entry into China as they were previously.”
“Australia has upset the Chinese by banning the use of Huawei 5G network technology on security grounds. With coal being Australia’s biggest export commodity, and China being its biggest customer, the halt of imports at Chinese ports due to ‘safety concerns’ is making a palpable impact.”
Consumers Making a Stand
Chinese consumers are continuing to use their wallets to punish aggressor nations.
“As the worlds biggest spending consumer group on mid and high-priced ticket items, the buying power of the Chinese is considerable, and skewed away from some of the UK’s biggest trading rivals”
“The other bonus for British export businesses is the great appreciation of British culture, iconic brands, TV programmes and films, plus Premiership football has a massive following. This is complemented by an admiration for the ‘gentlemanly’ approach to doing business.”
“The UK is also a popular holiday destination, creating a positive emotional attachment to British brands. These are significant influencing background factors to business.
“When a trade agreement with China is finalised, UK companies will have more than just low tariff advantages and improved pricing to set them apart from overseas rivals,” Domenica concludes. “They will have a wide range of supporting attributes when exporting to the world’s future largest economy.”