The impact of British Pound rate declining

UK has been the Financial Service center of Europe. And compared with other EU countries, UK has been kind and tolerant to Chinese enterprises. what’s more, Chinese Chairman Xi Jinping visited UK in 2015,it greatly promoted to culture and economy of these two countries. Thus more and more Chinese enterprises regard Britain as the door from China to European Market.

But It’s well know that currency rate of UK pound has been declining since the”off European referendu” starting. While the production of “hanging parameter” add more worries to all of us who care about British situation. These series of changes and unstable has great influence to British and Chinese trading.

One of our British customer who has cooperation with GF on Loading dock light told us that declining of British pound has great influence to his business.

Value decline of British pound means raw material cost improved. If the lights were sold with previous price, British distributors will have less or no profit than before.

Thus price increasing is unavoidable unless they have many stocks.

They future told us that next purchasing plant need to regard on British pound value.

We can know from above story that if “off European ” be a confirmed no reversed decision, it will be more difficult for Chinese enterprises to strengthen connection with Europe via “British door” . China have had to choose other channel to cooperate with European country. Also the impact of the various pre-bedding trade policy is also likely to greatly discounted and become a high sunk costs.

Thus, GF sincerely hope the leading group of British can be confirmed as soon as possible, and British pound can have a strong come back.