Britain has made itself a laughing stock in the world; “Cameron was a complete idiot”; “Britain is weaker and China will take advantage”. Just three opinions expressed to me recently by Chinese friends. But it would be difficult to find many in Chinese political and business circles who would disagree.
Seen from Beijing, the decision by David Cameron, the former prime minister, to risk Britain’s EU membership in a referendum was reckless, to say the least. The subsequent victory of the Leave campaign shocked the Chinese, and came as a particular embarrassment to President Xi Jinping, who had personally promoted a “golden era” in relations between China and the once-reviled former colonial power.
China will no doubt seek to make the most of the new realities. Chinese investors have been attracted by the openness of the UK market. While the tariff-free access to other European markets afforded by UK membership of the EU is critically important to foreign car manufacturers, for instance, many Chinese investors are interested in British assets, such as real estate, prestige brands and infrastructure, for their intrinsic value. Investment in these areas is likely to continue.