In the article below I am reported from a speech at Chinese New Year.
I do not underestimate the significance of this decision, although once it is made nations and companies adjust. But the adjustment on the issue of long term investment could hurt us badly. We are a important part of China’s medium term financing plans. Those plans are key to much else that arises therefrom, about where attention is focused. And on what?
So we negate 10 years of Huawei investing in the UK at our own risk. We risk G5 technological levels in our own economy, and we risk China prioritising our financial centre.
It is clear that the USA is concerned that it let a national priority be ignored, and now wishes to play catch up, but the cost to us is very high.
Much higher than many other nations.
There are dire predictions that we will do a free trade deal with the usa and become servile to the USA. It is possible, of course. But in the last 100 years since we handed over the reins of the empire, there have been significant moments when we have acted independently. This is a very important moment for our nation, but we should not walk around saying Brexit will kill us etc. We have to make the best of what happens.
Having said that, I do hope we demonstrate good sense and protect both our special relationship with the USA and our economic relationship with China. We and the USA disagreed about our finally joining the AIIB. Maybe now that does look like such a bad call.
Happy New Year