Brexit Will Have Little Impact On India, Says Chinese Media

The newspaper pointed out that in economy and trade, there would be impact “though not significant ones”.

Brexit means China will at least have an opportunity to negotiate a bilateral trade agreement with Britain, which is one of China’s most important markets in the EU.

Shen said China respects the British people’s decision, and will closely watch economic developments in Europe after Britain leaves the bloc.

Still, China also faces a risk that Britain’s departure will leave other European Union members free to take more forceful action in trade disputes including steel.

Many in the market fear that China will soon devalue its currency to prevent a further slowdown in its economy.

The British pound and the euro currency used by 17 European Union countries have sunk relative to the dollar. As currencies of other developing countries also weaken, the Chinese central bank will be forced to decide whether to let the yuan, also called the renminbi, fall with them or stick closer to the dollar. And China, like other countries, has been caught up in the market turmoil that followed the vote, with the yuan falling to a five-year low early last week. That fueled expectations that Beijing was weakening the currency to boost exports and prompted investors to move capital out of China.

“Following Brexit it was effectively advertised to our colleagues in North America that the UK was on sale and consequently you get an increase in searches for UK products”, said Travelzoo UK managing director Richard Singer. Longer term, however China will be hurt by a weaker pound, as it will make China’s exports to Britain less competitive. “We’re also seeing a huge spike in searches for United Kingdom hotels from our Chinese business”.

State-owned companies such as SAIC Motor and Changan Auto, as well as private carmaker Geely, already have such facilities in the country. Geely bought the company in late 2013.

Qiu was in Paris to meet several dozen French companies in the retail, luxury, wine, and cosmetics sectors and explain how it can help them tap into the potential of the Chinese e-commerce market as it gives them access to its 169 million strong user base.

It said that some dealers are offering a 10% discount on imported Land Rover SUVs as a response to the pound’s depreciation following Brexit.