Does Britain Have Little Direct Impact On China'S Economy?

According to the latest news of the media, in June 23rd, the United Kingdom was holding a referendum in the EU.

The vote shows support.

The number of votes to win over Europe by a narrow margin is no longer a member of the European Union.

Affected by this, the pound fell to its lowest level since 1985, and gold rose.

Just now, British Prime Minister Cameron has announced his resignation.

At this time, apart from standing on the side of the world, we lament that such a momentous historical event is caught up by ourselves. Should we also care about this incident to China?

And what is the impact of related industries?

Of course, there are many "KUSO" and ridicule in this circle of friends.

Let's get down to business.

Some experts pointed out that the United Kingdom has no direct impact on China's economy, but the impact of the chain can not be ignored.

First, Britain will succeed in breaking away from Europe, and China EU cooperation strategy will be difficult.

It is reported that since the United States formulated the return to the Asia Pacific strategy, China's pressure on the surrounding environment has increased sharply. It is urgent to find new partners to ease the economic and political pressure imposed by the United States and Japan.

Like China, the EU also suffers from excessive intervention by the United States to reduce its autonomy in international trade.

Under such circumstances, the EU has become an important strategic partner for China to cope with the pressure of the United States, and Britain is an important part of China's opening of the EU's door.

Since last year, China and Britain

More frequent exchanges, creating more and more common interests of economic interests.

In order to achieve mutual benefit and win-win situation, Britain's role in the EU has gradually changed into an important supporter and partner of China. For example, it vigorously lobbied the EU to recognize the status of China's market economy, so as to help China achieve tariff reduction and exemption.

In addition, the United Kingdom has also vigorously promoted the China EU free trade agreement.

If the agreement reached a total of billions of dollars, the successful signing of the agreement will bring huge trade orders to China and help to fully open the European market.

The successful implementation of the trade agreement will have a huge impact on the pan the Atlantic trade and investment supported by the United States and become an important measure for China to respond to the US tightening policy toward China.

However, once Britain is successful, it will be difficult for China to strengthen its strategic plan of cooperation with the EU through the UK.

Britain's departure from the EU is an indirect way to break the invisible ties of cooperation between China and the EU, making China have to choose other ways to tighten up its cooperation with the European Union.

Second, Britain's successful export of Europe will lose many trade and investment from Chinese enterprises.

China has nearly 500 million potential customers in the European market and has strong prospects for development.

However, after decades of development, the European market has been highly integrated, forming its own mature market model. The close cooperation among local brands has blocked many Chinese enterprises.

Faced with this situation, many Chinese enterprises choose the strategy of "saving the country through curves", first enter the relatively loose British market for Chinese enterprises, and then enter the European market on the basis of it.

Many Chinese enterprises have set up branches or even headquarters in the UK, hoping to get preferential tariff policies from other EU countries through contacts between the UK and the EU.

In addition, many Chinese enterprises have extended their value to the value manufacturing chain, and expect cooperation with the UK to expand the possibility of technology pfer between China and the United Kingdom and even the European Union, and break the high technology trade barriers set up by the United States and other countries, many of which are large enterprises.

So the British referendum leaving the EU is a blockade of the strategy of Chinese companies looking to enter the European market.

Wang Jianlin, China's richest man, commented that if Britain were to leave the EU, it would lose many trade and investment from Chinese enterprises.

In a recent visit to Britain, he warned that if Britain withdrew from the EU, Chinese companies might consider moving their European headquarters elsewhere.

Third, Britain succeeded in removing Europe or disrupting the internationalization of RMB.

Now, the RMB has just joined the IMF's package currency program, and has taken an important step in the internationalization of RMB.

China is promoting the policy of RMB settlement by major trade partners, thereby consolidating and strengthening the international influence of RMB.

Britain has provided strong support for China in this respect. London has become the second largest offshore RMB settlement center after Hongkong.

London has always been the financial service center of the European Union, which is a great convenience for those headquartered in UK financial companies.

These enterprises are equivalent to having "Schengen", which has branches in other European Union countries, and do not need to register again.

Therefore, China regards London as an important base for the movement of RMB in the European market.

However, once the UK is out of Europe, the money dividend will cease to exist, and the cost of the renminbi through the UK's strategy in Europe will also increase significantly.

In contrast, Britain is no longer the best strategic partner to promote RMB internationalization.

Fourth, Britain's success in Europe is not without any benefit to Chinese people.

In fact, the referendum outcome of Britain's "off Europe" will also indirectly affect the daily consumption of Chinese people to study in Britain, outbound tourism and Hai Tao through the exchange rate trend.

When assessing the impact of Britain's de EU on China's economy, domestic academics believe that it will have a negative impact on China's capital market in the short term. However, given the fact that the trade between China and Britain is not large, the impact of Britain's off Europe on China's economy is minimal.

On the other hand, if Britain takes off Europe, the pound is bound to fall, which is good for the people who are going to study in Britain and travel.