Zhong Shan, China's minister of commerce, and Liam Fox, Britain's International Trade Secretary, pledged to push the China-Britain relations toward the "Golden Era" by strengthening bilateral ties, economic investments, and cooperation in the World Trade Organization as soon as the United Kingdom leaves the European Union in 2019.
The two countries have also agreed to discuss a higher level free trade agreement as soon as Brexit officially takes effect. The two leaders met during the 13th conference of the China-UK Joint Economic and Trade Commission held in Beijing on Aug. 24.
Ahead of the conference, Fox has met with China's General Administration of Customs and closed a deal allowing China's import of U.K. dairy products. The deal is estimated to bring as much as $308 million over five years to the United Kingdom.
China has become one of Britain's fastest growing market for its food commodities. In fact, Chinese demand for U.K.'s dairy product alone is growing by more than 20 percent each year. Dairy products being exported to China from the United Kingdom include yogurt, flavored milk, and cheese. Chinese consumers prefer U.K. dairies because they regard the product as high in nutritional values.
Richard Burn, Queen Elizabeth's Trade Commissioner for China, hoped that the two countries could also explore possible trade across more food and drink categories. After all, China has also become Britain's fifth largest trading partner with exports increasing by 28.5 percent in 2017 compared to 2016 following the lifting of imports of beef from Britain to Beijing which lasted for almost two decades.
The potential of Britain's market growth with China alone proved that it made the right decision to leave the EU, said Michael Gove who is Britain's environment secretary. The deal involving dairies alone can boost U.K.'s trade by $86 billion.
Indeed, Fox said that he aims to boost Britain's exports of domestic product to 35 percent after Brexit takes effect. The United Kingdom would soon open agricultural trade to the rest of the world.
Meanwhile, Zhong mentioned during the conference that China believes that there is no clear winner in a trade war. Nevertheless, Beijing is not afraid to fight the trade battle especially if it will promote free trade among nations, and will abolish unilateralism and protectionism.
Fox echoed his opinions, stressing that Britain also objects unilateralism and protectionism and would give its best to liberalize international trade by removing barriers to worldwide commerce. He added that he hopes China and the United States would hopefully see eye-to-eye regarding the matter.
