Brexit Business Opportunities – Table of Contents
- So, will Brexit affect British Trade with China?
- Brexit UK and China Trade
- So, what business opportunities will Brexit bring?
- Brexit importing from China
- So, what business to start after Brexit?
- Best business ideas after Brexit
- So, over to you…
So, will Brexit affect British Trade with China?
- Yes, as the UK departs the EU, it will also depart all the trade agreements which the EU has made with other nations such as China. The UK will need to create new trade agreements with these countries.
- China will most likely take a step back and wait until it sees the new relationship between the UK and the EU has become settled as China will want to see this relationship. It will be difficult for the UK to agree with China without first establishing a new post-Brexit partnership with the EU.
- The EU will not want the UK to become a back door for Chinese products to enter the EU because the EU is very likely to use rules of origin to close any such loopholes.
Brexit UK and China Trade. - The departure from the EU requires the UK to negotiate its own accords, including China, which is the UK’s third-biggest trading partner.
- China is starting to flex its muscle as it feels encouraged as the world’s second-biggest economy.
- When publically criticized by a country, China can react negatively to that country in terms of trade. The UK has felt this, albeit very softly, concerning its seafood exports after its criticism over Hong Kong.
So, what business opportunities will Brexit bring?
The good news is that brand GB is very well respected in China, and products from the UK are sought after.
- If you’re already exporting goods outside the UK, or you’re eager to explore overseas markets, the devalued pound resulting from Brexit uncertainty could help to boost your export sales.
- This devalued price will open up new opportunities to sell UK products into China.
- The Chinese are particularly keen on high-end British products, which they cannot source in China.
- The UK may see growth with China in the services economy, particularly in the financial services sector.
- The UK may initially not see any real benefits in reduced costs of imports from China.
Brexit importing from China
- If the pound strengthens against the dollar, this will positively impact the cost of importing goods from China as these are usually priced in US dollars.
- Until the UK has a trade agreement with China, it will trade on WTO terms for all goods imported. It will have some positive and negative effects on some products when the UK was in the EU.
- Health and Safety standards will require more scrutiny as products were imported into the UK using European Health and Safety standards. Traders will need to be aware of any new UK standards which the UK will impose.
So, what business to start after Brexit?
The UK is a significant importer of consumer goods from China. Consumer goods from China account for more than half of the UK’s total imported goods.
However, when the UK switched to World Trade Organisation (WTO) terms, there will be limited savings in reductions in tariffs for importing these products apart from ‘sweaters, pullovers and vests.
The taxes for some of the leading consumer goods are:
- Furniture and its parts – “Most Favoured Nation” tariff rate – 1.66%
- Articles for arcade, table or parlour games – “Most Favoured Nation” tariff rate – 3.7%
- Sweater, pullovers and vests – “Most Favoured Nation” tariff rate – 11.91%
- Seats and its parts – “Most Favoured Nation” tariff rate – 2.98%
- Lamps and lighting fittings – “Most Favoured Nation” tariff rate – 0.00%
So, unless you want to get into the Sweater business, then you should consider selling goods to China.
What are the Best business ideas after Brexit?
For the UK, the areas where British business of all sizes can benefit is selling goods to China. The UK has a fantastic reputation in China for the products which makes. The types of products that Chinese buyers are interested in include:
- Fresh Food
- Seafood
- Packaged Healthy Foods
- Trendy Snacks
- Juices
- Alcoholic Beverages
- Baby Food
- Breastfeeding Products
- Baby Accessories & Maternity Ware
- Natural Cleaning Products
- Fashion Clothing
- Shoes
- Jewellery
- Makeup & Skin Care
- Beauty Accessories
- Sports Goods
Selling goods to China has also become easier with eCommerce and B2B. To learn more, please visit TCI Chinas Ecommerce page and Seafood Pages
So, over to you…
If you’re
- tired of struggling to develop sales into China or seeking to sell into China
- worried you’re not buying correctly from China
- fed up trying to experiencing trading problems and need some advice
I’m here to help you decide how to make the most out of Brexit for your business. please contact me below for a free 20-minute consultation.
Aidan Conaty –
Mobile- Messenger (Click to Connect)
Or at the following numbers:
- (Europe/ Rest of the World) +353 1 885 3919
- (UK) +44.020.3287.2990
- (North America) +1.518.290.6604
Or email me Aidan Conaty
tcichina.co.uk | think China, think TCI