Chinese State Councilor and Foreign Minister Wang Yi and British Foreign Secretary Jeremy Hunt co-chair the Ninth China-UK Strategic Dialogue in Beijing, capital of China, July 30, 2018. (Xinhua/Liu Bin)

The UK benefiting from economic and trade cooperation with China while increasing political criticism is an unsustainable strategy for development of bilateral relations, analysts said amid media reports hyping the alleged suspension of the Shanghai-London Stock Connect program. 

Reuters, citing sources, alleged the Chinese side suspended the program and that one of the reasons behind the move is Britain's stance over the months-long Hong Kong riots and remarks over the detention of a former staff member at its consulate in Hong Kong.

The suspension was not confirmed by the Chinese side but Chinese Foreign Ministry spokesperson Geng Shuang said at Thursday's routine press conference that China "hopes the UK can provide a fair, open and non-discriminatory business environment for Chinese companies investing in the UK, and create appropriate conditions for smooth practical cooperation between the two sides in various sectors."

London Stock Exchange Group told the Global Times on Thursday that the connect mechanism is still in use and open for companies in both Shanghai and London to get listed.

Cui Hongjian, director of EU Studies at the China Institute of International Studies, told the Global Times on Thursday that the UK is seeking a decoupling of economy and politics in its diplomatic ties with China, which is unsustainable as it fails to meet China's expectations for bilateral relations.  

China is making the line clear: economy and politics are not two separate realms and sovereignty and territorial integrity are part of China's core interests, leaving no space for discussion in this regard. The European country should clarify its political attitude and stance on related issues if it wants to continue reaping the economic benefits, Cui said.

The stock connect program aims to boost China-UK cooperation - to help expand the investor base for Chinese companies while letting Chinese mainland investors buy UK-listed shares.

Cui said China could halt the program as a countermeasure to show its attitude toward the UK's interference in China's domestic affairs. 

China tries to prevent politics impacting the economy, but countermeasures were necessary when the UK crossed the bottom line, he said, noting even if the program were suspended, other current economic cooperation would not be affected. 

In 2018, bilateral trade between China and the UK reached $80 billion, 260 times that seen in 1972. With $1.7 billion of Chinese investment in 2018, the UK has become the second largest investment destination for China in the European Union, the Xinhua News Agency reported.

Bilateral trade in the first half of 2019 reached $39.8 billion, up 10 percent from the previous year, said Xinhua. 


Newspaper headline: UK cannot decouple economy and politics in diplomatic ties: expert