One of the messages sent by Brexit supporters was that we needed to be less dependent on the slowly growing EU and get closer to rapidly growing economies like China. This message ignored a number of uncomfortable truths:
- That physical proximity is a major factor when it comes to trade. The notion that we'd have the same volume of trade with China half way around the world is ridiculous.
- EU membership wasn't a barrier to increasing trade with China, other EU countries do far more trade than the UK
- Being outside the EU reduces our "clout" when it comes to setting up trade deals
Nevertheless, the message was clear, the EU is the past, China is the future.
The government has now reversed that position:
https://www.bbc.co.uk/news/uk-politics-63787877
IMO he's not wrong but if we're not going to be able to buddy up to China then where is our growth going to come from ?
More economic illiteracy from the UK government.