CBI Chief in Oxford: It is Unrealistic to fully Distance the UK from China

The CBI’s Rain Newton-Smith is giving a speech today. She speaks at Oxford University on February 5. She will discuss the UK’s trade policy. The UK shouldn’t embrace protectionism, she believes.

This happens as a global trade war looms. US President Trump plans to impose new tariffs. He confirmed plans for tariffs on Canada and Mexico. These are 25% tariffs. The start is delayed one month.

Trump imposed 10% tariffs on China on Tuesday. Beijing quickly retaliated with tariffs. China targeted coal, gas, and crude oil. The CBI chief says UK can’t fall behind. She speaks of a possible trade war.

The UK must lead in trade and innovation. It also needs to lead in sustainable growth. She acknowledges tensions between the US, EU, and China. The UK shouldn’t align with any single bloc.

She thinks engagement beats protectionism. Ignoring the issue isn’t the answer either. The UK needs to be practical about China. Security concerns exist, but decoupling is wrong, and it’s also unrealistic, she says.

Boosting business confidence is key, and the government really needs to focus on it. Newton-Smith said the Labour budget caught firms off guard three months ago. It undermined investment and jobs, she stated.

Firms are straining under the budget’s weight. Businesses face increased overheads, and they also have less room to invest. This must be the start of a confidence campaign. It needs to get businesses investing.