Talks under way on free trade deal with China

BRITAIN has begun trade negotiations with China, Philip Hammond announced last night.

The Chancellor said he had started discussions with the powerhouse nation about an ambitious free trade deal which could see Chinese firms having greater access to the UK economy.

He added that, in the wake of the Brexit referendum vote, it was time to explore ‘new opportunities’ across the world.

He said these were opening up with other major economic powers such as Australia and India.

Chinese state media reported earlier this month that its ministry of commerce wants to do a free trade deal with Britain.

However, this will raise concerns about cheap manufactured goods entering the UK more easily. The recent crisis in the steel industry was largely blamed on cheap Chinese steel being ‘dumped’ here.

In return for greater access to the UK for its products and investment, China could reduce barriers to Britain’s service industries such as banking and insurance, and cut tariffs on British goods.

Speaking in Chengdu, China, Mr Hammond said: ‘We can’t legally enter into new trade agreements until the point where we exit the EU, which could be two, two-anda-half years down the line. We have time to look at the options, to negotiate agreements.’