Andrew Rosindell – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Andrew Rosindell on 2016-01-18.

To ask Mr Chancellor of the Exchequer, what assessment he has made of the implementation of the recent economic slowdown in China on his Department’s policy on bilateral trade and investment with that country.

Harriett Baldwin

The Treasury continuously monitors global economic developments, including those in China, and their impact on the UK as part of the normal process of policy development.

The Chancellor has warned that “last year was the worst for global growth since the crash and this year opens with a dangerous cocktail of new threats from around the world.” As one of the most open trading economies in the world with a large financial sector, we have to recognise that the UK is not immune to the continued problems being experienced in the world economy.

We should not let this put us off engaging with China. As the Chancellor said while leading the UK’s Economic and Financial Dialogue with China in September 2015, both countries: “have a shared commitment to laying the foundations for stronger, more productive economies that can weather periods of uncertainty. At the same time, we need to continue to pursue the longer-term reform challenges that both our governments are pursuing.”

The UK’s exports to China have grown rapidly; since 2010, exports of UK goods to China have grown by over 90%. Even if China’s GDP growth slows to 5%, it will still add an economy the size of France to global GDP by 2020. This is well below the central scenario: the IMF forecasts China’s GDP growth to average 6.2% over the next 5 years.