Brexit heightens global uncertainty: China’s Li

China’s premier has called for joint efforts to restore global economic confidence following the shockwaves of Britain’s vote to leave the European Union.

The increase of instable and insecure elements in a certain country or a certain region can cause the Butterfly Effect, which will in turn have an impact on the world economic recovery and the stability of financial markets, the premier said.

“Under such circumstances, we need to jointly handle challenges, strengthen confidence and create a stable global environment”, the premier told an audience of Chinese and foreign businesspeople.

“I want to make it clear that Europe is an important partner for China and China will continue to be committed to maintaining the growing China-EU relations and China-UK relations”, Li said in his speech at the World Economic Forum in Tianjin, according to South China Morning Post.

Beijing faces a blow from weaker European demand for its exports and pressure to hold its yuan steady in turbulent currency markets.

Chinese companies own France’s Club Med, the makers of Pirelli tires, Volvo cars and Weetabix cereal and football teams Inter Milan of Italy and Aston Villa of Britain.

London is the second-largest center outside mainland China for settling transactions in the Chinese currency, the yuan.

But Li was also quick to acknowledge the risks accompanying China’s transformation. China is the world’s biggest trader but exports as a share of the economy declined a year ago to 22 percent from 2007’s 33 percent.

The event brings together political and business leaders to discuss the hottest topics from Asia’s economic outlook, and China’s 5-Year Plan, to the disruptive forces behind much of today’s changing economic climate.

The People’s Bank of China spent tens of billions of dollars in 2015 to defend its state-set exchange rate after a change in the mechanism for deciding that rate fueled expectations Beijing was trying to depress its value.

He vowed that China will build a fairer, more transparent and predictable investment environment for foreign investors, and give equal treatment to domestic and foreign businesses.