In the very near future, it is anticipated that a London-based clearing bank will be set up as a “hub for offshore renminbi RMB) payments,” positively impacting trade in China. UK Chancellor of the Exchequer, George Osborne is currently working on an agreement that would result in the UK becoming one of the most significant offshore centers in the world for Chinese currency trading.
Recently, there has been a significant escalation in the amount of global RMB transactions. This is because China has broadened its economy, removing itself somewhat from its insular comfort zone. This Osborne believes, is indicative of “a vital growth opportunity,” for the UK.
During Osborne’s recent visit to Hong Kong, he spoke about China UK relations. He termed it a “two-way relationship of equals.” He further explained, that it is no longer the case that UK’s finance minister was focused merely on ensuring enhanced accessibility to China’s market. Indeed, today, close to two-thirds of RMB payments that are out of China and Hong Kong, are taking place in London.
These recent moves are paving the way for an already elevated level of positive, workable, China UK economic relations.