1. The impact of Brexit on China:

Brexit is a long legal process, during which many agreements will not be changed all at once. China's exports to Europe and the UK will be slightly under pressure. Xiang Songzuo, director and deputy director of the Institute of International Monetary Studies at Renmin University of China, believes that in the long process of Brexit, the general direction of Chinese investment in the UK and Europe will not be fundamentally shaken. The United Kingdom and the European Union may continue to maintain a win-win trade relationship. The two parties may seek to re-sign a series of agreements. The United Kingdom may also withdraw from the Lisbon Agreement. However, the United Kingdom will not choose to withdraw from the common market. The two sides may continue to maintain the original trade structure. This provides a foundation for the stability of China's trade with Britain and Europe.

The impact and impact of Brexit on the global economy cannot be ignored, but its direct impact on the Chinese economy is not worth panic. Sino-British bilateral trade only accounts for 2% of China's total trade volume, of which fastener export trade accounts for a smaller proportion. In 2015, the total amount of fasteners exported from China to the United Kingdom was 43,877.3 tons, with a total value of US$86,683,283, accounting for 1.78% of China’s total fastener export trade; in the same year, China’s total imports of fasteners from the United Kingdom totaled 1,599.3 tons. The amount is US$43,661,999, accounting for 1.5% of China's total fastener import trade.

However, the UK’s free trade tendency has long been significantly stronger than that of many continental European countries. Under the EU’s rigid decision-making mechanism, the UK cannot change the EU’s market protectionist tendency. Leaving the EU means that the barriers to “Made in China” entering the UK market will be much lower. Conducive to our entry into the British market.

2. The impact of Brexit on businesses

The person in charge of Shandong Gaoqiang Fastener Co., Ltd., an internationally renowned high-strength fastener manufacturer, said that export sales currently account for more than 10% of Luhua brand fasteners, and they are mainly exported to international markets such as Germany, the United States, India, and Russia. It is less dependent on the UK market and has little impact on the company.

3. Recommendations for Brexit:

As the renminbi has been depreciating recently and the exchange rate fluctuates greatly, companies should take preventive measures, such as signing corresponding terms with customers, to reduce unnecessary losses.