In addition, Wu Bangguo, China’s most senior diplomat, called off a planned
trip to Britain in May, and it is unclear whether the Prime Minister will be
able to make a planned trip to Beijing at the end of the year.
One British businessman in Beijing, who asked not to be named, said British
companies may also be targeted.
“The message has definitely been sent out through the Communist party
channels,” he said. “But it is difficult to link any particular
negative action directly to the meeting, of course”.
Meetings between British and Chinese officials are continuing at a lower
level, however, and some significant deals are still being discussed. London
is poised to become a major trading hub for the Chinese yuan and a
state-owned Chinese power company is bidding to build new nuclear power
stations in the UK.
Mr Cameron met “privately” with Tibet’s spiritual leader in May when
the Dalai Lama visited to collect the £1.1 million Templeton prize, which he
subsequently donated to Save the Children.
Every British prime minister since Sir John Major has met the Dalai Lama.
Baroness Thatcher refused to meet the Tibetan leader, saying that “the
interests of Hong Kong have to be taken into account”.
British officials were aware that the Chinese would respond aggressively, but
there are now worries over how long the frostiness will continue.
The Dalai Lama is due to return to Britain on Thursday for a 10-day,
pre-Olympic tour of various British cities. How the trip unfolds could have
a significant effect on Sino-British relations, said sources in Beijing.
In addition, pro-Tibet protests have been planned for the Olympic Games.
In the wake of Mr Cameron’s meeting, the state-run Global Times newspaper
called for China to suspend all diplomatic relations “for a while”.
It added that China is now strong enough to bear the economic consequences
of freezing relations.
“During the Olympics, China should cool down a little bit and we should
also slow some co-operative projects between the two countries.
This will have a cost to China, but it will have a negative effect on
Cameron’s government,” it said. “Chinese is against foreign
leaders meeting the Dalai Lama and it has become routine to have a strong
response both in trade and politics”.
After Nicholas Sarkozy, the then French president, met the Dalai Lama in 2008,
it took France roughly two years to normalise relations with Beijing. The
Chinese also believe Angela Merkel, the German chancellor, acted
duplicitously by meeting the Dalai Lama shortly after a trip to Beijing in
2010.
However, sources in Beijing said the situation is not as dire as the fallout
between Norway and China over the award of the Nobel Peace Prize to Liu
Xiaobo in 2010. Since then, Norwegian diplomats have found themselves
entirely unable to speak to their Chinese counterparts.
A Foreign Office spokesman said: “This is disappointing as we believe
that it damages both Chinese and British interests. We strongly believe it
is in the interests of both countries to manage our differences sensibly and
co-operate as much as possible”
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