Withdraw from European Union of Britain will Influence the Foreign Trade of Tungsten Heater

Currently, there is only less than a month before the referendum for withdrawing from the European Union of Britain. The EU is an economic-political union of 28 member states that are located primarily in Europe. Every country maintains a positive attitude to this referendum, and the majority of investors believe that the chance to withdraw from the EU of Britain is small. Since British Prime Minister David Cameron announced that referendum would  be held in June 23, the pound has been in a state of sharp fluctuations, showing that the event is bound to bring about a crisis for the international economy. So if Britain really withdraws from the European Union, will it have any effect to China. The following are briefly discussions.

Firstly, the European debt crisis that broke out before has brought a great impact to China's economy, however, if Britain whose economic trends is better decides to draw out EU at present, which is bound to hamper the recovery of EU economy, even it can lead to the setback of EU economic. In this situation, EU will want to take a more protectionist policy in international trade, which would hinder bilateral trade between China and the EU countries. Thereby impeding the export of tungsten heater to European countries.

Secondly, if Britain withdraws from EU, Britain cannot be constrained by many policies of this organization, and then the related research on high technology of Britain will be unhindered flow into China. Therefore, it would hit many domestic related industries, which will have a negative impact on the development of related businesses in China. And some enterprises which produce tungsten heater may be eliminated because of the backward technology. On the other hand, the pound may depreciate because of the exit, while in the process of RMB internationalization is accelerating, which will lead to the foreign exchange market turbulence.

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