Chancellor planning to cement ties with China in post Brexit trade trip

GEORGE OSBORNE is preparing to put his best foot forward after the Brexit vote by ensuring the world is ready to trade with Brexit Britain — despite some calls for a second referendum.

George Osborne has revealed his intention to cosy up to economic giants China in the coming months to ensure the two countries remain on good terms when Britain officially breaks from the Union.

Deals worth more than £40bn were signed between the nations when Chinese President Xi Jinping visited the UK last October where he called relations between the nations a ”golden time".

During the visit the president of almost four years made it clear he supported a “united” Europe — which included Britain.

But Britons stunned the world on June 23 with a vote to leave the EU and Westminster has been engulfed by the bitter fallout after the resignation of PM David Cameron.

The Brexit vote threatens to redefine Britain's growing financial services relationship with China, which has agreed to a number of joint projects as part of the China-UK Economic and Financial Dialogue programme to deepen economic ties between the two counties, based largely on the UK's membership of the EU.

Mr Osborne is also talking to the Bank of England to ensure that lending does not "seize up" and that the Brexit vote does not produce a repeat of the credit crunch in 2007-2008, according to the paper.

On Friday, the Chancellor gave up his centrepiece policy of turning Britain's budget deficit into a surplus by 2020, faced with potential economic stress following the country's shock decision to leave the EU.

It was the latest setback for Osborne who was once considered a future British leader but who has not put himself forward to succeed Cameron after the two men failed in their campaign to keep Britain in the EU.

The decision has rocked British financial markets and left the country’s trading future with uncertainty.

But the FTSE 100 fought back within 48 hours and countries are now said to be racing to build trade deals with Britain.

And despite the political fall-out within the Conservative Party, George Osborne is reportedly staying above the fray, and focusing on the road ahead.

The Chancellor is already planning another trade visit to the country before the end of this year, the Financial Times reported.

In an interview with the paper, Osborne said: "We have got to get on a plane and sell Britain to the world." 

He said: “..but we have got to make sure we are as close as possible to our European allies and that they remain not just key friends and strategic partners but also a crucial export market" 

The finance minister said he had not yet decided who to back in the Tory leadership contest, which has seen interior minister Theresa May become the front runner to become prime minister

There is a long list of British brands and companies that now have Chinese backer including Weetabix, House of Fraser, MG cars, London taxi cabs, Heathrow and Manchester airports.

And the UK has become the second most popular destination for Chinese investment in Europe, second only to Italy.

After the Brexit decision a Foreign Ministry spokeswoman said China “respects the choice made by the British people”.