China warns Britain 'provocation' in South China Sea puts post-Brexit trade deal at risk

Beijing tells Britain to 'rectify' situation or risk damaging relations

The HMS Albion exercised its 'freedom of navigation' rights as it sailed near the Paracel Islands last month, in a move that outraged Beijing (EPA)

Britain may have damaged its chances of securing a post-Brexit free trade deal with China after a Royal Navy warship sailed close to disputed islands in the South China Sea, a major Chinese state-run newspaper has warned.

Beijing was outraged when the HMS Albion, a 22,000-ton amphibious warship, sailed near the Paracel Islands last month, calling the move a “provocation.”

The UK has long looked towards China for a post-Brexit trade deal and talked of a “golden era” of relations, though any formal talks cannot begin until it officially leaves the EU.

Last month, the two countries agreed to look at the possibility of reaching a “top-notch” post-Brexit free trade deal, which would be an important political win for Theresa May’s government.

“China and the UK had agreed to actively explore the possibility of discussing a free trade agreement after Brexit. Any act that harms China’s core interests will only put a spanner in the works,” the official China Daily newspaper warned in an editorial.

The paper said Britain’s challenge to China’s claims in the region was an attempt to “curry favour” with the US, which has been pushing for greater international participation in freedom of navigation operations in the South China Sea.

“Now that it is eyeing the US as an economic lifeline after it exits the European Union – the United Kingdom is no doubt eager to seize whatever opportunity it can to get into Washington’s good books,” the English-language newspaper said.

Britain’s ties with China could be at risk unless it takes steps to “rectify” the situation, a spokeswoman for the Chinese Foreign Ministry said.

“They clearly violated the consensus and spirit put forward by Britain’s leadership that they wished to build a golden era in ties with China. This certainly will unfavourably influence the further development of the China-Britain relationship,” Hua Chunying told a daily news briefing.

“We hope that Britain can recognise the severity of the issue and take actions to rectify the situation,” she added, but did not elaborate.

China’s claims in the South China Sea, through which around $3trn (£2.3trn) of shipborne trade passes each year, are contested by Brunei, Malaysia, the Philippines, Taiwan and Vietnam.

The country’s defence ministry said the situation in the region has stabilised with the joint efforts of China and Southeast Asian countries.

“Certain countries from outside the region pay no heed to this, and send military ships and aircraft to the South China Sea to foment trouble, creating problems where none exist, threatening regional peace and stability,” it said.

China regularly denounces what it considers interference from “countries outside the region,” which is generally considered a message to the US and its allies to stay out of the maritime dispute.

Adding to the tension, the foreign ministry late on Thursday said Britain should stop "gesticulating" about Hong Kong and interfering in China's internal affairs, after Britain issued its latest six-monthly report on its former colony.

In the report, foreign secretary Jeremy Hunt referred to "growing concern about the extent of freedom of speech in Hong Kong, particularly in the context of discussion of independence", adding that Britain did not think independence was a realistic or desirable option.

China said the issue of independence had nothing to do with freedom of speech and was a serious violation of its constitution and Hong Kong law.

"It fundamentally is not within the scope of freedom of expression," the ministry said. "The central government has zero tolerance for 'Hong Kong independence' and will never indulge it."

Additional reporting by Reuters