Chinese Premier Li Keqiang has asked for joint efforts to reconstruct global economic confidence which was jolted after Britain elected to leave the European Union. He said on June 27 that the referendum had a marked impact on the financial markets and also increased global economic uncertainties. He was speaking at a business conference where he emphasized that under such tough environments, there is a need to jointly handle all challenges and shore up confidence. There is also a need to form an international environment which is stable and also find the requisite solutions to solve the root causes of this specific problem. Li also said that Beijing prefers a stable and united EU and Britain as well.
Effect of Brexit
Stock markets all over the world dipped due to Brexit, with the value of Sterling also going down to unprecedented lows. Li said that against the globalization backdrop, it is not possible for every country to develop on its own, independent of the global economic environment. The Chinese premier also asked for worldwide efforts to tackle challenges, boost confidence among investors and to aid in global economic recovery.
Britain and China have warmer relations in recent years, and there has been a flourish of economic links, and both countries are going through what David Cameron, the British Prime Minister, and Xi Jinping, the Chinese President, calls the “golden age” in ties. The former has resigned following the results of the referendum.
On June 27, Global Times, the influential Chinese Government tabloid, warned that the financial meltdown is just the beginning of British troubles. In an editorial, the newspaper opined that exiting the European Union will not end British difficulties, but will start a painful process. On June 24, China has asked the UK and the EU to sign an agreement as quickly as possible and has added that China respects the choice made by the British people.
Premier Li, when questioned about China's outlook, said that compared to the slowing growth of the world's economy, the economic operations of China remain stable, and growth continues within reasonable range. Global investors had their hopes raised during March when a surge in Chinese economic activity led to the idea that there was an improvement in the Chinese economy, while the May readings came as a dampener, pointing to longer weakness and also the requirement for better policy support.