Closer cooperation with Britain

Li promises ‘steady and sound growth’ of relations with UK

BEIJING: Britain and China pledged to promote London as a centre for offshore use of Beijing’s currency and cooperate in clean energy research and promoting trade as the country prepares to leave the European Union.

Officials announced the agreements following an economic dialogue led by Britain’s finance minister, Philip Hammond, and a senior Chinese economic official, Vice Premier Ma Kai.

The event was attended by a delegation of British business leaders and economic officials.

British leaders are looking to China for trade and investment as they try to fashion a new global role and offset reduced access to the other 27 nations of the European common market.

The two sides agreed to promote international use of China’s tightly controlled yuan and develop yuanbased business in London. That could help to shore up the British capital’s status as a global financial centre outside the EU.

“The two sides will discuss future trade arrangements and push for the conclusion of a China-EU investment agreement,” Ma said at a joint news conference yesterday.

The economic dialogue is an annual event, but this year’s gathering in Beijing took on special significance following Britain’s 2016 vote to leave the EU.

Hammond was accompanied by the governor of the Bank of England, Mark Carney, British financial regulators and an unusually large delega- tion of businesspeople to Beijing.

Hammond said London is looking for a “sustainable future arrangement” with the EU. He said that was likely to be more complex than agreements made with Canada or members of the European Economic Area.

“It is likely that we will want to negotiate specific arrangements, bespoke arrangements that reflect the long and close trading history,” said Hammond.

Britain wants “an environment which will effectively replicate the current status quo”, allowing companies to conduct trade and financial services across borders, he said.

Premier Li Keqiang, China’s top economic official, expressed confidence during a meeting with Hammond in “steady and sound growth” of Chinese-British relations regardless of what happens between London and the EU.

“We hope Britain and the EU will conduct their Brexit negotiations in a way that’s mutually beneficial for both sides and result in outcomes that are desirable for both sides,” said Shi Yaobin, the deputy Chinese finance minister.

Chinese and British officials also agreed to look at ways to expand Britain’s role in Beijing’s “Belt and Road Initiative,” a vast project aimed at expanding trade across Asia to Europe by building railways, ports and other infrastructure.

Hammond announced the British export finance agency will support up to £25bil (RM135bil) of new business along the “Belt and Road” in Asia and added former HSBC Group chairman, Douglas Flint, would serve as the British Treasury’s envoy to “Belt and Road.”

“China and Britain are natural partners in the Belt and Road Initiative,” said Ma.

The two governments agreed to cooperate more closely on clean energy research, advanced manufacturing and high-speed rail.

“These are welcome steps that will help deliver Britain’s vision of a stronger, fairer, more balanced economy and will support China’s vision for the future direction of its economy,” said Hammond.

It is likely that we will want to negotiate specific arrangements, bespokearrangements that reflect the long and close trading history. Philip Hammond