Hammond Seeks Brexit Business Boost In China

The Chancellor has arrived in China to promote Britain as a destination for "new opportunities" in the wake of the Brexit vote.

It (Other OTC: ITGL - news) is Philip Hammond's first trade trip since his appointment - with the significance of the destination underlined by the Treasury which said the UK was currently home to more Chinese investment that any EU country.

It said this would be the first of several such visits to key economic partners following the referendum.

Mr Hammond, officials said, would tell politicians and investors that the UK would continue to be an open trading nation with a competitive low tax economy.

In China's case, the Treasury added that Mr Hammond was keen to build on "the 'golden era' declared during President Xi's visit to the UK last year".

He also wanted to impress on the Chinese that the UK's decision to leave the EU will not affect the global partnership between the UK and China.

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A delegation of business leaders from financial services companies including HSBC, Standard Life (LSE: SL.L - news) and Aberdeen Asset Management (Other OTC: ABDNF - news) are joining him in Beijing and Hong Kong.

Mr Hammond is also due to attend the G20 meeting of finance ministers in Chengdu.

He said of the visit: "My focus in China will be on promoting British business opportunities, including in the financial services sector, where Britain is a world leader.

"Britain is open for business and one of the most attractive destinations in the world for international investment.‎

"We have built a strong economic relationship with China and as Chinese investments into the UK continue to diversify and as UK exports grow, Sino (Dusseldorf: 1205802.DU - news) -UK relations are more important than ever."

He carries out the trip amid warnings that uncertainty over the UK's future relationship with the EU will damage job growth and investment over the next few years - hitting UK output.

Trade deals generally take years to complete.

But the Chancellor will take some comfort from the fact there has been no rush for the UK exit door by multi-national businesses in the fallout to date.

A £1bn deal with a Chinese construction firm in Sheffield - the biggest outside London - was announced on Thursday.

Mr Hammond continued: "In the last few days alone we have seen the Australian Prime Minister say he wants a new trade deal with Britain - and Japanese technology firm Softbank announce plans for a record investment in the UK.

"This is all evidence that our economy is fundamentally strong and well equipped to adapt to the change that will be necessary as we leave the EU."