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The following article was published in our article directory on December 3, 2010.
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British Prime Minister Advisers Said Massive Tightening Trade are Not Wrong

Article Category: Business

Author Name: xia zihui

December 2, British Prime Minister David Cameron's visit to China two weeks after the end of the prime minister of trade consultant and former European Commission Vice President Leon Brittan Lord smiled and walked into the British Ambassador's residence, and the recent visit British officials, like China, Brittan want to find a out of the economic plight of China's help to promote bilateral economic and trade cooperation is Brittan shouldering the important task of China is one line.

Cameron early November visit to China to show the Conservative government's ambitions to expand in China. Cameron hope that bilateral trade could double by 2015 to 1,000 billion U.S. dollars, and to the United Kingdom's exports to China to 300 billion U.S. dollars. Cameron's first China trip from the point of view, clean energy, innovation, industry and other areas of the Sino-British trade cooperation has become the breakthrough point, but the law and at the same time period to reach 20 billion U.S. dollars compared with commercial single, still dwarf the Sino-British trade and economic cooperation eclipsed.

In Brittan view, the biggest obstacle to the Sino-British trade, the British do not really understand China in the past three decades of economic stability and development opportunities, so looking for a breakthrough lies in the deepening of communication. "I came here to better understand China and China's information passed back to the UK." He said he and the Chinese government will actively communicate the business community to help them understand the investment opportunities in the UK.

Brittan then said that the British hope in a sustainable manner the goal of doubling bilateral trade. Brittan, made special mention of the love of trade. He said that although the scale of the love of trade is much higher than the current Sino-British trade, but the recent crisis shows that the rapid development of Irish is not sustainable.

Slow recovery of the world economy, the recent resurgence of world trade protectionism trend. Near the end of the year, between the United States and Central Europe, a number of trade disputes. But Brittan did not believe that protectionism is impeding the main obstacle to Sino-British trade cooperation. "As the Organization for Economic Cooperation and Development (OECD) report shows, trade protectionism were not as serious as people think." He told our reporter, "I think people from the Great Depression of the thirties of last century to the middle school a lot. At the time, people's response is the establishment of depression of trade barriers, making matters worse. now the world's governments are well aware of this point, not again. "

While politicians, including Conservative Party, including Leon hope to upgrade Sino-British trade and economic cooperation rapidly, but the Cameron government's fiscal austerity, or so many Chinese entrepreneurs hesitant.

October 20, the British Chancellor of the Exchequer Osborne announced significant cuts in public spending, the scale of up to 81 billion pounds. Widely believed, according to the plan, the public service will have about 49 million people unemployed. The news immediately caused strong resentment among the union sector.

Many analysts believe that the UK should not be chosen high unemployment, rising inflation, prospects of economic recovery are unclear, the so decisively to cut the deficit. It is feared that this would kill the momentum of recovery is not conducive to attracting overseas investment.

In this regard, Brittan the eighties of last century's chief finance minister, has a different view.

British Government's austerity policies of existing major reduction in recurrent expenditure, "This cut is painful, but there are two factors have contributed to the current government spending cuts." Brittan explained that one is confident that if Britain does not cut public expenditure, then the existing level of debt to continue to be a real risk, capital is likely to flee the UK market; the other cuts in public spending could promote economic expansion in private sector development.

"If the government less taxes, less spending, then one day we always come out of recession." He also hoped that "the private sector to make up for funding cuts left vacant, and promote economic growth. The current recovery is still very fragile, and now No one thinks it will be a large-scale recovery of the British economy, but moderate and sustained growth is possible. In fact, the British economy has been slowly recovering, the momentum of this growth to continue in the next year. "

Reduce recurrent expenditure, to improve infrastructure to help Britain out of recession, modest growth for sustained and appropriate policy mix, the UK is actually the current inflation is not so high, just a little bit high. I'm not sure this is not good for us.

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