Britain posts its best manufacturing figures in FIVE YEARS as officials claims the Brexit vote makes a UK-China trade deal more likely because it cuts out the 'frustrating' EU

• Chinese trade official Xing Houyuan says Brexit will 'push China and the UK to make a trade treaty'
• British trade minister Lord Price says he's 'optimistic' about future deals
• Ex-Waitrose boss is in Hong Kong discussing future trade relationships
• China Commerce Ministry says Brexit will 'create more chances in different fields for new investment'
• China is frustrated by the EU says state-backed trade organisation official

By Matt Dathan, Political Correspondent For Mailonline and Tim Sculthorpe, Mailonline Deputy Political Editor

Brexit makes the prospect of Britain striking a trade deal with China more likely, trade officials from both countries have said. 

Xing Houyuan, an official at the state-backed Chinese Academy of International Trade and Economic Cooperation, said China was being frustrated by the EU.  

But now Britain has left, he said the 'situation in Western Europe will push China and the UK to make a trade treaty,' he told the state-owned China Daily newspaper. 

And British trade minister Lord Price, a former boss of Waitrose, is currently in Hong Kong where he said the future of 'optimistic' about future trade deals with 'new trading markets' in the East. 

China's Commerce Ministry spokesman Shen Danyang also gave a positive outlook, telling China Daily that Brexit will 'create more chances in different fields for new investment'. 

The announcements came on the day Britain posted its best manufacturing figures in five years. 

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Brexit makes the prospect of Britain striking a trade deal with China more likely, trade officials from both countries have said. Last year relations between China and the UK thawed after President Xi Jinping's state visit to Britain, pictured meeting David Cameron in Mansion House, central London 

He predicted global currency fluctuations caused by Brexit would not do lasting damage to Chinese investments in the UK, which would not be affected in the long-term.  

Contrary to claims during the referendum campaign that leaving the EU would leave Britain isolated and cut off from the global economy, the developments suggest Brexit could open up Britain to new opportunities.  

A treaty with the UK could be fast-tracked after years of China being 'frustrated by the EU,' China Daily reported. 

As a member of the EU Britain has not been able to negotiate individual trade deals with countries for years, with Brussels responsible for negotiations. 

It means Britain has been left without trade deals with the likes of Canada, Australia, Japan, China, the US and other countries because the EU has so far failed in attempts to secure deals. 

There are fears that this left the UK with few trade specialists who have the experience of striking trade deals.  

Oliver Letwin, the Cabinet Office minister tasked with preparing the Government's Brexit negotiations, said his unit is identifying how many staff it needs and said private sector staff will need to be hired, as well as the prospect of asking experts to 'train high-flying young civil servants'.  

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David Cameron (right) took President Xi Jinping (left) to his local pub in Oxfordshire during the China premier's state visit to the UK last November  

Lord Price spoke about 'helping create a second Elizabethan Golden Age' by striking new deals with Commonwealth countries such as New Zealand, Australia and Canada and also with economies in the Far East such as China, Japan and South Korea. 

Speaking to the British Chamber of Commerce in Hong Kong, he said: 'I'm optimistic about the future: particularly in helping create a second Elizabethan Golden Age. 

'The first Golden Age was based on peace, prosperity, new trading markets and a flourishing of the arts. 

'There's also a prospect for striking new deals with Canada, New Zealand and Australia which could form the beginning of a Commonwealth trading pact.'

'And to the opportunities in the East, where for centuries British merchants have traded with China for tea, white gold and porcelain as well as with Japan, South Korea and other Asian nations.' 

He also said the UK is working towards 'a continued close trading relationship with Europe'.

Echoing Lord Price's positivity, Mr Shen told China Daily: 'The global investment environment will be more transparent and create more chances in different fields for new investment.

'Therefore, Chinese companies' outbound direct investment will remain positive and stable.' 

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British manufacturing is growing steadily and figures for the three months to May were the best in five years, ONS data out today revealed 

 

The Office for National Statistics today said manufacturing output came in at a better-than-expected fall of 0.5 per cent, dropping down from April's rise of 2.4 per cent, but remaining ahead of a predicted slide of 1.1 per cent.

Economists branded the performance as 'resilient', as manufacturing output rose 1.7 per cent in May compared to the same month in 2015.

Activity in the wider industrial production sector also slipped 0.5 per cent month-on-month, after picking up 2.1 per cent in April.

On an annual basis industrial output was up by 1.4% on May 2015. And in the three months to May, output grew by 1.9% at its quickest pace in six years. 

Martin Beck, senior economic advisor to the EY ITEM Club, said the results point towards a stronger performance from the UK economy in the second quarter.

He said: 'Following increases of 2.1 per cent and 2.4 per cent in production and manufacturing output respectively in April, May's fall of just 0.5 per cent is a surprisingly good outcome.

'The evidence we have from the official data and the business surveys suggests that even in the event of a further monthly decline in June, manufacturing output is on track to rise by almost 2 per cent in the second quarter.

'With April's strong readings for services and construction output also pointing to solid performances from those sectors, it now looks very likely that second quarter gross domestic product (GDP) growth will come in ahead of the first quarter's outturn of 0.4 per cent.'