What would the possible impact of Brexit on China? (Please list four possible impacts within 200...

What would the possible impact of Brexit on China? (Please list four possible impacts within 200 words)

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Expert Solution

1. With a no deal Brexit, China would get a competitive advantage. As goods and services that is being traded in European Union will no longer be tariff free. This will lead UK to shift towards China for many imports of goods and services. This increase imports would be a strong boost to the Chinese Economy. It may lead to a free trade agreement (FTA) also.

2. This increased exports will also increase the demand for Chinese Yuan currency. The Chinese currency will appreciate in value not only on comparison to British Pound, but also to with currencies such as US Dollars.

3. The trade will also legitimize Chinese Governance. The increase trade and dependency on China could subdue UK's position over the Hong Kong crisis. The power consolidation of the Chinese government over Hong Kong could become more strict.

4. The Belt Road Initiative will also become more attractive for investors both private and public. This extra trade will enable China to prove the efficiency and worth of the project.

Rahul Sunny answered 1 week ago

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