UK: The Confederation of British Industry (CBI), has confirmed the breakdown of business relations of British enterprises with Chinese firms amidst rifts between Beijing and the west. The brewing political and security tensions have caused the British firms to step back from continuing or carrying forward the business ties any further with China.
The CBI, headed by Tony Danker, has warned that a sudden breakdown of ties with China could disrupt supply chains significantly. Already, inflation has hit the all-time high in the United Kingdom, and this can further worsen the cost-of-living crisis in the country.
Danker said the UK would need to find new trade partners and rekindle old ones – such as the EU – if the west cuts ties with China and that if Britain failed to do that, corporate supply chains would be “more expensive and thus inflationary” and its trade strategy would be redefined.
In fact, the security and political experts have expressed the need to have healthy relations with the Asian superpower. Most of the firms are reconsidering their decisions regarding their ties with China and looking for alternative suppliers. Most industrialists anticipated the bitter political relations with China, thus looking to reconstruct their hassle-free supply chains.
Danker further stated that Britain is looking for new ‘strategic’ allies. Though, it is definitely going to make things difficult for some time. But the companies need to be prepared in case Britain and China part ways in future.
The United Kingdom is already facing instability in the political landscape. Boris Johnson’s resignation from the position of Prime Minister And the international relations with Russia and China have been suffering.
Earlier, the foreign secretary and PM contender Liz Truss had accused former chancellor Rishi Sunak of being incapable of handling foreign affairs. Whoever succeeds Johnson would be expected to resolve these matters at the earliest.