China Welcomes Open Relationship With U.K.: Jin

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Dec. 3 (Bloomberg) -- Keyu Jin, lecturer at London School of Economics, examines the economic relationship between the U.K. and China as Prime Minister David Cameron visits the nation. She speaks on Bloomberg Television’s “The Pulse.”

British papers is that china, the u.k. needs china more than china needs the u.k. i think that is partly right.

30% of u.k. exports are going to china.

China needs to put its money somewhere.

It wants to diversify its foreign assets.

You k -- the u.k. has a special advantage does it is more welcoming towards chinese investment.

It has manifested in terms of investments and infrastructure.

I think the u.k. has a special advantage here.

Is the chinese leadership enthusiastic about the relationship?

Are they more enthusiastic than we think?

I think this is a formality that is necessary.

That is well perceived and welcomed by the chinese.

They think it is important to establish this relationship.

It helps with a formal visit.

I think the chinese are welcoming this kind of open relationship and open talks.

David cameron is pushing high-speed two, the government is going to fund that project.

What areas are looking at?

Where to locate its offshore center for rmb?

--r&d? these are important sectors.

We are talking about broad -- give me a sense of the timeline.

Is london -- we have seen shifts already.

You have banks, is london significantly ahead of other peers?

I think so.

It has to do with the geographic location of london and being the center of the financial world.

Particularly because it has been more welcoming towards chinese investments than any other country.

When you look at the geopolitics of this, you have biden in japan today, he is talking about what is happening in the military front, does that give the europeans and advantage?

Absolutely.

It is a golden opportunity to foster this relationship with china.

Things are not going to get better between the u.s. and china.

It could potentially get worse.

The u.s. has left china in an awkward position.

They have been excluded from the talks.

By offering to have more openness in trade and finance with china, the u.k. is in a particularly good position.

What are the mechanics that can be done?

Visa is very important.

There is another thing that is very important, student exchange and education.

It is in some ways a solid relationship.

There are still -- so many students going from china to the u.s. now, you have all of these chinese tourists.

They like to go to multiple countries at the same time.

They just go to the -- they just go to europe.

When they go to paris and germany, they will contribute to purchasing power in the u.k. the noises that you hear from paris or berlin, is it an easy throwaway line for him or is there something to it?

If you can lower tariffs, you can increase the goods trade across different sectors.

It is important to recognize that the u.k. and china are not competing on the same kind of jobs or exports.

China, despite all of the development, they are low skill labor and technology intensive.

They need to import services from the u.k. there could be benefits towards a mutual trade.

By exporting cheap goods to the u.k., they benefit -- that benefits the u.k. consumers.

That is one thing that people tend to ignore.

Think about the consumer welfare gains from cheaper things in china.

Thank you.

Francine, over to you.

As we had to break, joe biden is speaking now in tokyo.

We will bring you the headlines from the joint statements when we come back.

They are seeking to demonstrate their unity in opposing a chinese air defense zone.

?

This text has been automatically generated. It may not be 100% accurate.

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