Policy of engagement to continue

UK's newly-elected government is also likely to support greater role for Beijing in global institutions

The British election failed to produce a decisive result. With no party able to win an overall majority in the House of Commons, Britain has its first "hung parliament" since 1974.

At the time of writing, the three main political parties are jockeying and negotiating between themselves about the formation of a new government. At a moment when the UK faces a number of economic challenges, the financial markets have reacted negatively to the uncertainty surrounding Britain's immediate political future, with the value of the UK stock market falling 2.6 percent last Friday and the British pound falling to a year low against the dollar.