Mr Hammond said he wanted the UK’s links with China to grow closer.
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The Chancellor of the Exchequer is now at the summit in Chengdu, central China to meet policymakers with the aim of enticing future investment in the wake of the European Union referendum.
Britain’s decision to leave the European Union has led to a “dramatic deterioration” in economic activity, not seen since the aftermath of the financial crisis.
“July saw a dramatic deterioration in the economy”, said Chris Williamson, Markit’s chief economist.
There was broad consensus that the global economy needed more growth, US Treasury Secretary Jack Lew told reporters.
The newspaper claims a £1 billion partnership with Sichuan Guodong Construction was signed just yesterday, funding various city-centre projects in UK.
The PMI is the first significant set of data measuring business reaction to the result of the United Kingdom referendum.
The so-called purchasing managers’ index for Britain – a gauge of business activity closely watched by investors and policymakers – fell to 47.7 points in July from 52.4 in June.
Officials are believed to be looking at New Zealand’s bilateral trade deal with China – which took more than three years to negotiate and came into force in 2008 – as well as the possibility of Britain joining an existing agreement.
Responding to Hammond’s comments, shadow chancellor John McDonnell said it showed that the new chancellor couldn’t defend George Osborne’s austerity measures.
Hammond said on Friday that, in the short term, the Bank of England would use monetary policy to address market turbulence following the Brexit vote. While Hammond acknowledged there had been “global disappointment” at the decision to quit the European Union, he added: “What we now need to do is get on with it in a way that minimises the economic impact on the United Kingdom economy in the short term and maximises the benefit in the long term”.
Although business confidence dropped to an 18-month low, the overall pace of economic growth was in line with pre-Brexit trends, and employment across the eurozone rose.
In trips to Berlin and Paris this week, May has successfully bought herself until early 2017 to trigger Article 50, beginning two years of negotiations to leave the bloc, whilst her and her government decide what kind of “Brexit” economic model they are aiming towards.
While 43% of companies’ investment plans will continue unchanged, just under four-in-ten firms (38%) expect to be investing less in the United Kingdom over the next year.
As Britain begins this new phase, they seem to be much more open minded and willing to aggressively pursue new avenues of trade to build the country.
Mark Carney, Governor of the Bank of England, said markets had so far weathered “spikes in uncertainty and risk aversion” triggered by the vote.
Asked about a report in the Observer newspaper that an “emergency brake” on the free movement of people was being discussed, which would allow Britain to keep access to the European single market, Mr McLoughlin said: “Let us see”.
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The suddenly darker outlook in the United Kingdom, to be sure, should come as no surprise since business leaders largely favored staying within the European Union.
