E-commerce giant JD.com has said that the UK leaving the European Union will see cheaper British goods entering the Chinese market. According to The Telegraph, management at the online retailer have said that the trade relationship between China and Britain could get stronger following Brexit.
“From a business perspective there will be an immediate impact because the purchase price will be lower as the pound falls in price,” said Tony Qiu, head of JD Worldwide. “I know there are some people who are not happy with the result but we are optimistic. I think there will be a positive outcome for business in China,” he added.
But Tony Qiu’s words fly in the face of those who say that improved trade relations with China could take a while to sort out, with some estimating that it would take 500 British negotiators and 10 years before a formal trade deal could materialize.
Since Britain voted to leave the EU last Thursday, the pound has plummeted in value, accompanied by falls across global stock markets.
Last week Chinese travel agencies were reporting that the British tourism industry could emerge as a winner following the vote to leave the EU, with Chinese tourists snapping up discount holidays to the UK following the fall in the pound.
JD.com and Alibaba Group, China’s biggest player in the e-commerce market, together account for about 80 percent of all online retail sales.