Making China great again

Most reporting on Jeremy Hunt’s visit to China this week went little further than his slip of the tongue in describing his wife as Japanese rather than Chinese. Preoccupied by that trivial matter and any offence it might have given the new foreign secretary’s hosts (which seemed to be none), commentators missed the somewhat more substantial issue of why China is so keen to oblige Britain’s requests for a trade deal.

A ground-breaking free-trade agreement between Britain and the world’s ascendant superpower would be the great boon the UK government so desperately needs, especially after Brussels’ rebuffing of May’s Chequers plan for Britain’s future relationship with the EU and the kerfuffle over Donald Trump’s vanishing offer of a ‘beautiful, beautiful’ UK-US deal. It would give Britain a trading relationship with a country which the EU’s trade negotiators have so far failed to master, and give credence to the Brexiteers’ argument that an independent Britain can be far more fleet of foot in its trade negotiations than a plodding EU can.

The new foreign secretary certainly seemed to make progress. China’s openness to Hunt’s advances suggests that ‘Global Britain’ can indeed forge ahead into the new Asian century, never mind the old world order. China, moreover, is eager to expand its influence over America’s key global ally. Foreign Minister Wang Yi flattered Hunt by proclaiming that Britain and China would uphold global free trade.

But Yi then turned the knife, stating that ‘whoever takes the unilateral approach will be isolated’. It was a warning to Washington, but one that could equally apply to London. What Yi was really saying was that he expected Britain to play along to China’s tune.

No matter how appealing a trade deal between Britain and China, it comes with costs. For a start, greater trade with China invariably means larger trade deficits.