Free Trial

PM Johnson Risks Conservative Backlash From High-Level China Talks

UK

Last night Politico reported that the UK gov't could be seeking to restart trade talks with China, which have been on hold since 2018. The Department for International Trade (DIT) and the Treasury are seen to be keen to improve trade links with China, which sits as the UK's third-largest trading partner, although the DIT stated it was not seeking an FTA with Beijing.

  • While an improved relationship with China could provide an economic boost to the UK, seeking high-level ministerial talks risks upsetting an increasingly vocal wing of the governing Conservative party formed of China hawks at a time when Johnson's leadership is under significant threat.
  • The timing of the story is inopportune for the UK gov't, given that Beijing just days ago restated its support for Argentina in its claims over the Falkland Islands British Overseas Territory following a meeting between President Xi Jinping and his Argentine counterpart Alberto Fernandez in Beijing.
  • Politico quotes former Conservative leader Iain Duncan-Smith, Foreign Affairs Select Committee chair Tom Tugendhat, and former Brexit Minister David Davis in opposing the plans. The latter two are seen as opponents of Johnson remaining as prime minister following the 'partygate' scandal.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.