The Global Times has explained the media company’s viewpoint on the UK government’s ban on Huawei 5G.
In an article published on Friday, the GT states that the fresh release of China’s economic data for the first six months of 2020 will allow the country sufficient flexibility and ammunition when it comes to redefining ties with the UK.
Key notes
The hubris and arrogance behind the UK government’s ban on Huawei 5G, will lead to a cooling of the once “golden” China-UK relations.
And British politicians that sought to pamper to the US’ international bullying at all costs should be held accountable for the subsequent damages to bilateral ties.
As the first major economy to recover and stabilize after the coronavirus outbreak, China is again on the rise. The developments will give the government a firmer resolution to protect its businesses and safeguard their legitimate rights and interests abroad.
It is highly possible that broader economic and cultural links between the two countries will go down, and the impact could be limited on China’s colossal economy, but agonizing on the UK economy, the media company said.
The Chinese economy has continued its recovery with a faster-than-expected 3.2 percent growth in the second quarter, while the urban unemployment rate dropped to 5.7 percent in June, representing renewed momentum in economic activities.
The deterioration of UK’s relationship with China is expected to cast a shadow over its link with Asia’s industrial chain spearheaded by China.
Some in the UK tend to downplay the importance of China-UK relations as they did not see many economic benefits in the “golden era” between the two sides, but that’s completely misguided and shortsighted.
The market is highly concerned about what the Chinese “sanctions” on the UK will be, which may include discouraging Chinese students to go to UK universities, and Chinese tourists to shun the country. A fraught relationship is not something London can bear.
Market implications
The Chinese economy has continued its recovery with a faster-than-expected 3.2 percent growth in the second quarter, which is bullish for global growth prospects and potentially bearish for the US dollar. This is a story which gold bugs are monitoring closely in terms of the reflation playbook.
- Gold prices walking a tightrope over $1,800 psychological level
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