Asia’s biggest economies expressed their concerns on the global stability of the world market after Britain’s exit from the European Union.
Lou Jiwei, China’s Finance Minister said that Brexit’s consequences were still unclear and that the effect is still to be felt in years to come. He adds that the ‘repercussions and fallout’ would arise in the next 5 to 10 years. However, the finance minister thinks that the fall of the stock market last June 24th was an excessive reaction and might have been overdone.
China was reportedly responsible for $3.3 billion worth of foreign direct investment in the UK. Former Prime Minister David Cameron also announced that $54.7 billion worth of deals was made between Britain and China after the latter’s presidential visit to the UK last year.
South Korea and Japan have stated that their countries are ready to react to any market volatility from Britain’s exit.
Indian conglomerate Mahindra chairman Anand Mahindra also said that the behavior of the world to the market was an overreaction. While most reactions were negative, Mahindra spoke of the advantageous effects to his company citing the possible reduced taxes of Britain, where his company operates.
However, Adi Godrej said that he was surprised by UK’s decision as it was going to be so negative from an economic point of view. The chairman of India’s Godrej Group added that the decision would affect Indian companies in the country as they have set Britain as their gateway to the EU.
US Secretary of State John Kerry met with UK Foreign Secretary Philip Hammond last June 27th in London for their first high-level face-to-face talks since the referendum.
