Burberry and Jaguar Land Rover will face consumer boycott, China warns

Chinese state media has begun explicitly warning the UK of how Beijing will retaliate via economic means – stalling on post-Brexit trade talks or pinching British businesses in China – as a diplomatic row deepens between the two nations. 

A series of pieces posted after Foreign Secretary Dominic Raab announced Monday that the UK would suspend its extradition agreement with Hong Kong over security concerns offer a clear roadmap of what could come if London continues down this “erroneous path”, as the Chinese government has threatened.

One piece in the Global Times, a Chinese Communist Party mouthpiece, said that “China could move to slow down or suspend the trade talks” in response to the UK’s recent policy reversal to ban Chinese telecoms firm Huawei from building the country’s 5G networks. 

The state newspaper has also warned that if the UK “upholds such a hostile attitude toward China, Beijing may have no other choice but to strike at British companies like HSBC and Jaguar Land Rover.”

“A boycott of British brands, such as Burberry, Jaguar Land Rover and a spate of UK schools could be likely options for Chinese consumers if London does not reverse its decision,” read the state media outlet.

State media also mock the UK for being a “faithful poodle” of the US, and warn that China is minded to redirect foreign investment to the EU – a direct jab at Britain’s growing economic concerns with Brexit and the coronavirus pandemic hitting growth.

Taken together, the pieces flesh out in detail the ominous tone already set by Beijing, warning that “China will resolutely fight back” and urging the UK to turn back from its “erroneous path.” 

“China urges the UK to relinquish the illusion to continue its colonial influence in Hong Kong, immediately correct its mistakes, and stop interfering with Chinese domestic affairs to avoid further damage to bilateral relations,” the foreign ministry said Tuesday. 

Ties between the UK and China have worsened significantly primarily over concerns of eroding liberties in Hong Kong and the government’s decision to ban Huawei. 

Communications regulator Ofcom finding that Chinese state television CGTN violated British broadcasting rules, which could lead to fines or barring the channel from airing in the UK, has exacerbated tensions. 

Aside from consumer boycotts – already hugely damaging when the Chinese state leverages its 1.4 billion people against foreign brands – British businesses could also begin experiencing more red tape or regulatory difficulties, as other nations engaged in spats with China have experienced. 

As relations between Beijing and Ottawa began decaying in 2017, also over Huawei issues, Canadian canola shipments suddenly began stalling in long Chinese customs inspections. China claimed they contained “harmful organisms” and import licenses for Canada’s two largest canola exporters remain suspended.

Beijing is also reportedly considering export bans of Finland’s Nokia or Sweden’s Ericsson equipment manufactured in China in retaliation if EU countries move to bar Huawei from 5G networks, following similar decisions by Australia, New Zealand, US and UK. 

The US has urged a “decoupling,” calling on companies to bring operations back onshore to America to reduce their reliance on China. The idea to limit supply chain risk has gained traction during the coronavirus pandemic after many nations discovered the majority of personal protective equipment was made in China.

The Japanese government announced last week that it would earmark millions for subsidies to encourage companies to bring production back home or to diversify to other parts of Asia.