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In an interview with the official China Daily published on Tuesday, China's ambassador to Britain, Liu Xiaoming advised caution to Chinese companies operating in Britain, especially in the financial sector or whose European headquarters are in Britain. Liu said companies need to take "precautions" due to uncertainty over Brexit.
"Chinese companies in these sectors should take precautions," Liu said, without elaborating.
The European Union is China's largest trading partner and the block is expected to lose around a sixth of its economic output and an important supporter of free trade in the EU. China values Britain as a strong advocate for free trade within the EU.
Britain has worked hard to attract Chinese investment, including in the financial sector, giving Chinese companies a London-based entry into the EU market. Britain, China, France and energy company EDF are set to sign an agreement to build and operate a new nuclear power station in Britain.
Liu was upbeat about Sino-British ties. He said that the UK and China need to work closely together and seize opportunities to advance Chinese-UK relations. He added that China and the UK must stand for multilateralism and oppose unilateralism.
“Looking into the future, challenges still exist but we are confident that we are able to ensure a steady growth of China-UK relations in the Golden Era." said Liu.
