Mark Carney, Governor of the Bank of England, said markets had so far weathered “spikes in uncertainty and risk aversion” triggered by the vote.
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The world economy is at a “critical juncture” where the impact of the financial crisis is still unfolding, said Chinese finance minister Lou Jiwei, who also called on the G20 to play a leading role in supporting a new worldwide tax system.
Amid reports that talks between Britain and Europe have been acrimonious at best, US Treasury Secretary Jacob Lew said he had used the G20 meeting to stress the “the need for negotiations to take place in a smooth, pragmatic and transparent manner”.
Meanwhile, Mr Hammond said Britain was eager to advance a bilateral trade deal with China.
In return for greater access to the United Kingdom for its products and investment, China could reduce barriers to Britain’s service industries such as banking and insurance, as well as cutting tariffs on United Kingdom goods.
Intriguingly, he also opened up the possibility that when it comes to establish new trading relationships with the rest of the world, Britain might join an “existing agreement” such as the Trans-Pacific Partnership – a US-China trade pact. “Once we are out of the European Union then I have no doubt on both sides we will want to cement that relationship into a firmer structure in a bilateral way that’s appropriate”, he told the BBC.
“That’s something we will have to explore in the future”.
Philip Hammond, the U.K.’s chancellor of the exchequer, said the issue came up repeatedly during the G20 summit, which has now ended.
The British government will aim to outline a Brexit blueprint “later this year”, according to the finance minister, in a move that he said would send a “reassuring signal” to businesses and markets.
Officials in Chengdu said protracted or acrimonious talks between the European Union and Britain over the departure could heighten the dangers. Beijing is embarked on a fundamental transition meant to make domestic consumption the key economic driver instead of massive public spending and cheap exports.
“The challenge for us is to make sure that other politicians who are not so narrowly focused on the economic agenda also share that view and recognise that it is important not just for Britain but for Europe as well that we continue working closely together”.
Overcapacity was a “global issue which requires collective responses”.
In his interview with Sky News, Mr Hammond said: “It was a shock to the economic system”.
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At the G20 many countries are now moving into practical mode – the Chancellor campaigned against leaving the European Union and China argued against it, but Mr Hammond has clearly signalled that is now a matter for the history books.
