British prime minister again displays a cosiness with Beijing – SCMP

Anil Panchal FXStreet

While citing a phone call between the leaders of the UK and China, the South China Morning Post (SCMP) cited British Prime Minister’s favor to China, in contrast to the European Union, which can negatively affect its relations with the US.

Key quotes

UK Prime Minister Boris Johnson has told President Xi Jinping that Britain welcomed Chinese investment under Beijing’s Belt and Road Initiative, a geopolitical move that will probably further upset the Trump administration.

Johnson’s pledge to stay close to China on international issues comes after his government refused to heed Washington’s request to impose a ban on Huawei Technologies, giving the Chinese tech giant a share in Britain’s next-generation 5G mobile networks.

China’s President Xi Jinping, in return, reassured Britain that China’s economy was still in good shape, as he attempts to prevent a decline in business confidence amid the coronavirus outbreak.

The Chinese leader also speaks with French President Emmanuel Macron and Croatian President Zoran Milanovic.

FX implications

Although global markets paid a little heed to the story, this could turn the British pound (GBP) negative catalyst if US President Donald Trump reacts to the development of UK-China relations.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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