China threatens UK trade talks on warship sail-by - Reuters
As reported by Reuters, China's state-run media outlets are taking warning shots at the United Kingdom regarding trade talks after a British warship made a sail-by in contested waters in the South China Sea.
Key quotes
" “China and the UK had agreed to actively explore the possibility of discussing a free trade agreement after Brexit. Any act that harms China’s core interests will only put a spanner in the works,” the state-run China Daily newspaper said in an English-language editorial.
Britain has long courted China for a post-Brexit trade deal and talked up a “golden era” in ties, although any talks could not begin until Britain officially leaves the European Union and typically take many years to conclude.
China’s claims in the South China Sea, through which some $3 trillion of shipborne trade passes each year, are contested by Brunei, Malaysia, the Philippines, Taiwan and Vietnam. Britain does not have any territorial claims in the area.
The China Daily said Britain was trying to “curry favor” with the United States, which has been pushing for more international participation in Freedom of Navigation Operations in the strategic waterways.
“Now that it is eyeing the U.S. as an economic lifeline after it exits the European Union - the United Kingdom is no doubt eager to seize whatever opportunity it can to get into Washington’s good books,” the paper said."
Author
Joshua Gibson
FXStreet
Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.
