Companies may face challenges

Chinese enterprises may face challenges in using Britain's position as a gateway to expand their businesses in other European countries after the nation voted to leave the European Union, according to an insider.

Andrew Yuan, managing director of Hytera Communications UK, says Chinese companies in Britain are likely to see their businesses hurt by the decision, as many of them use their British headquarters to handle business in other EU countries.

"Take my company, for example. About 45 percent of our revenue last year came from European countries other than the UK. I'm worried that about one-third of our businesses may be dampened if the UK actually leaves the EU."

Hytera, based in Shenzhen, a metropolis in South China, specializes in designing and manufacturing mobile radio communications equipment. It set up a representative office in Britain in 2005, which has evolved into a headquarters covering markets throughout Europe.

Zeng Gang, a senior researcher at the Chinese Academy of Social Sciences' Institute of Finance and Banking, says the Brexit will hit the pound, causing a negative impact on pound-related assets in Britain.

"Chinese companies owning assets in Britain should readjust their strategies and look to diversify their investment in other European countries if they plan to expand their influence in Europe," he adds.

(China Daily European Weekly 07/02/2016 page9)