Britain backs China's bid for free-trade pact with the European Union
Comprehensive pact linking the economic giants and a scheme to connect London and Shanghai stock markets both deserve study, nations say
Britain yesterday threw its weight behind China's effort to reach a free-trade pact with the European Union, as the two countries issued a joint statement during President Xi Jinping's state visit.
The two countries called for the launch of a feasibility study for an "ambitious and comprehensive" agreement, marking the latest step by Beijing to counter the impact of a US-led trans-Pacific trade and investment deal.
They also called for a study on connecting the stock markets in Shanghai and London, after Britain won China's support for developing the British capital as an offshore yuan market.
Britain is also supporting the yuan's inclusion in the "supranational" reserve currency of the International Monetary Fund, provided Beijing meets certain criteria in an upcoming review.
The joint statement was in addition to a slew of inked deals aimed at launching a "golden era" between the two nations.
Earlier this month, the United States and 11 other countries reached an agreement on the Trans-Pacific Partnership (TPP), which has prompted China to more aggressively seek trade deals to offset its impact.
Sun Yongfu, former head of the European Affairs Department at the Ministry of Commerce, said Britain and other EU countries strongly intended to cooperate economically with China. "Cooperation in economy and technology with the EU, as well as under the 'One Belt, One Road' initiative will reduce the pressure of the TPP on China," Sun told the .
