China: Beijing retaliation set to hurt UK economy more than US trade war | World | News


The warning comes from Professor Adrian Pabst, deputy director of social and political economy at the National Institute for Economic and Social Research, who told that UK sanctions against China would see retaliation from Beijing cause a huge blow to the British economy. Earlier this month, US President Donald Trump said his administration would consider imposing sanctions on a list of 11 Chinese companies.

Commenting on the consequences of this move for the UK and Britain’s potential intention to do the same, Professor Pabst said: “We know that every time there are US sanctions against countries or countries. companies, there are ripple effects because US sanctions tend to not only affect individual countries, like Iran in the past or Russia, or even companies, but also affect all companies that wish doing business with these companies.“So it can have a ripple effect. And so it will all depend on exactly which companies the United States chooses to apply the sanctions.

“The UK has not traditionally opted for such broad measures as the US.

“For example, when it comes to sanctions against Russia, the UK has tended to side with the EU on sanctions against Russia, which would be more limited in scope than US sanctions against Russia.

“The same may be true in this case, where the UK might actually find itself more closely aligned with EU partners because it still wants to do business with China or some Chinese company.

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China: UK retaliation with China will have bigger impact on economy than US trade war (Image: GETTY)

“Again, a lot will depend on the policy and the political response to it, but the sanctions will certainly have an effect.

“And if, again, in terms of sanctions or in response to sanctions, China decides to retaliate, perhaps much more than it has done so far on Huawei’s decision in the UK- Uni, so, you know, the predictions will be that things are going to get worse and the economy will suffer more.

“But like I said, it’s really hard to simulate something where you don’t know what the political response will be in real time.

“It’s always going to be a limit of business models, so we can’t really, we can’t really overcome. ”

The Chinese ambassador to the UK on Thursday warned against allowing “Cold War warriors” to damage Beijing-Britain relations.

Rows above Hong Kong, tech giant Huawei’s ban from playing a role in the 5G network, and British criticism of human rights violations in Xinjiang have altered the relationship in recent weeks.

Beijing Ambassador Liu Xiaoming admitted that the quarrels had “seriously poisoned the atmosphere” of Sino-British relations.

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China: Liu Xiaoming warned UK of damaging new relationship (Image: LIU XIAOMING)

He dismissed allegations of abuse against Uyghur Muslims, condemned the Huawei ruling and warned the UK not to interfere in Chinese internal affairs in Hong Kong.

In an online press conference, Liu said, “China respects British sovereignty and has never interfered in the internal affairs of the United Kingdom.

“It is important that the UK does the same – namely, respect China’s sovereignty and stop interfering in Hong Kong affairs, which are China’s internal affairs, in order to avoid harming more to Sino-British relations. ”

The imposition of a new national security law led the government to open the door for British (overseas) passport holders from the territory to come to the UK, and to suspend extradition arrangements.

China has threatened not to recognize the BN (O) passport as a valid travel document.

Donald Trump’s White House pushed its allies to distance itself from China, and US sanctions ultimately led the UK to turn around on Huawei’s involvement in 5G.

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Huawei: countries around the world that have banned the Chinese tech giant (Image: EXPRESS)

Boris Johnson’s government has also come under pressure from hawkish MPs on the Conservative benches, calling for a stronger stance.

But Beijing’s representative to the UK said the country should follow its own foreign policy.

Mr. Liu said, “We hope the UK will resist pressure and coercion from a certain country and provide an open, fair, transparent and non-discriminatory environment for Chinese investment to restore the confidence of Chinese businesses. UK. . ”

He added that once the issues of Brexit and Covid-19 are dealt with, “there will be unlimited prospects for Sino-British cooperation in the areas of trade, financial services, science and technology, education and health ”.

“It’s hard to imagine a global Britain that bypasses or excludes China,” he said.

“Decoupling from China means decoupling opportunities, decoupling growth and decoupling the future.”

He said he hoped the two countries would have “enough wisdom and ability” to deal with their differences “rather than allowing anti-China forces and Cold War warriors to kidnap Sino-British relations.”

“Britain cannot be great without independent foreign policies,” he said.


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