Theresa May’s decision last week to delay approving the Hinkley Point nuclear power station signalled a turnaround in government policy towards China, barely a year after David Cameron’s announcement of a “golden era of relations” between the UK and Beijing. Since then, the political ground has shifted dramatically; with the UK now set to exit the EU, will a UK-China relationship still be mutually beneficial?
For China, one of the main draws of a strong relationship with the UK was the access it could provide to the EU bloc. Despite the Foreign Ministry commenting on the referendum saying that China “respects the choice made by the British people”, the exit vote certainly came as a blow – President Xi Jingping made it clear earlier this year on a state visit that it “hopes Britain, as an important member of the EU, can play an even more positive and constructive role in promoting the deepening development of China-EU ties.”
Partnership outside the EU
Without access to Europe, will the UK still be a strong partner for China? The weakening of the economy since the vote will also weigh heavily as Beijing weighs up the pros and cons of continuing their relationship – and investment – with the UK. According to Philippe Le Corre, a policy analyst in China-Europe relations, this could be bad news for the UK: “The reality is that Britain will be of no use to China within the EU now, with no influence left whatsoever.”
Theresa May’s turnaround in government policy towards the Hinkley Point nuclear plant, strongly supported by the Cameron-Osbourne partnership, will come as another blow to China. May has signalled that she has “severe reservations” about closer ties with China over nuclear plant, citing long-term security worries and the possibility of French energy company EDF being able to complete. Going ahead with the project would have shown trust in the China General Nuclear Power Corporation, and opened the door to further trade between the two countries. Hesitation now is likely to weaken the partnership that Cameron and Osborne worked to hard to create.
Post-Brexit agreement
Moving forward, it remains to be seen how much of the £40 billion worth of trade agreements between the two countries will still go ahead. The EU exit may well allow the UK to form its own trade relationships with China, maintaining the friendly relationship between the two countries – but without UK influence in the EU to barter with, it seems China now has the upper hand. Any agreements made post-Brexit are likely to be on their terms.
Miranda Wadham on 08/08/2016
