How will Brexit impact British firms in China?

Brexit happened when the UK withdrew from the European Union at the end of 31 January 2020. However, following the agreement of a UK-EU trade deal and the end of the transition period on 31 December 2020 the impacts of Brexit will start to become more visible.

Chris Dicks, a Beijing based Director in the Risk Advisory practice of Deloitte China, spoke to CGTN to give his views. See below for extracts from his interview with CGTN reporter Wei Lynn Tang:

"Whether you agree with Brexit or not, whether it's in the UK's interest, it does allow the UK to consider their global ties around the world with less focus on the EU," said Chris. "The UK's exports are much more significant with the EU – at around 55 percent. Whereas it exports only about 5 percent to China. So it goes to show there is scope for further enhancement of those business relationships and ties".

"The conversation among British firms here in China is more focused around the opportunities and challenges of operating in the China marketplace than it is around concerns over Brexit." Said Chris. "For example, dual circulation is a much more regular topic of conversation with multinational corporations (MNCs), including British companies, than Brexit is. And I think they're recognizing for them, it's probably about being in China for China, rather than seeing China as a manufacturing base they had seen it in the past".

Chris expects the UK to bring China business ties into sharper focus once the dust settles on the recent UK-EU trade negotiations. He talked of building on areas of existing cooperation, "where there is already a significant trade in terms of machinery, food and drinks, but also financial services and education as well."

"So I'd see further progress there, but really we see a steady progression of existing ties rather than a radical change from what we see today."

Chris added that in a post-Brexit world, "the UK recognizes that it needs to find a new role for itself on the global stage... and potentially as a bridging role between the U.S., China and Europe – which means being balanced in terms of their policy decisions between each of those."

For the full interview visit the CGTN website at the following address: How will Brexit impact British firms in China? - CGTN

Source: CGTN