What does the arrival of a new British PM mean for China?

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Theresa May succeeded David Cameron as Britain's Prime Minister on Wednesday, with people in China closely monitoring her stance towards immigration, overseas students and investment.

TOUGH VISA POLICY

May's spent six years as Britain's Home Secretary, during which she attempted to clamp down on net migration and restrict visas for overseas students. Some even described her as the “devil that scares international students.”

But there are now more Chinese students studying in the UK than in the rest of the European Union combined. According to Liu Xiaoming, Chinese Ambassador to the UK, there are more than 150,000 Chinese students in the UK overall.

Chinese students welcome President Xi's arrival to the UK in London, October 19, 2015.

So is May's elevation bad news for international students? Nick Hillman, director of the Higher Education Policy Institute, said that “pretty much any likely replacement for David Cameron, apart from Theresa May, would be good news for international students.”

May has criticized overseas students who overstay their visas, but according to Hillman “the fact is too many (overseas students) are not returning home as soon as their visas run out” - and thus do not help the UK economy.

“BREXIT MEANS BREXIT”

Despite campaigning to stay in the European Union, May now insists that “Brexit means Brexit.” She said at the official launch of her campaign that “there will be no attempts to remain inside the EU.”

How much China is looking to invest in the UK in the post-Brexit era is still unknown, but George Osborne, the Chancellor of the Exchequer under David Cameron, told the Financial Times on June 23 that boosting exports and investment would be vital to Britain’s future.

“We’ve got to get on a plane and sell Britain to the world,” he said. “And for me that means putting more effort still into our relationship with China.”

British Prime Minister David Cameron shares a pint with Chinese President Xi Jinping at the pub. (ANDY RAIN/EUROPEAN PRESSPHOTO AGENCY)

BILATERAL RELATIONSHIP

The Sino-UK relationship has warmed up in the past few years, and bilateral trade ties are seen as a key factor behind this improvement. Bilateral trade has increased in almost all of the past 10 years, with China becoming the UK's third largest importer. Bilateral trade reached 91.03 billion US dollars in 2015, according to China's Ministry of Commerce.

The UK is also the world's second-largest RMB clearing center according to Swift's RMB tracker.

Osborne, who has been a driving force behind the improved Sino-UK relationship, has strongly encouraged more business opportunities with China. His future under the new prime minister is uncertain, however.Chinese company the Beijing Engineering Construction Group is investing 800 million British pounds (1.06 billion US dollars) in an economic zone in the North West of England, a scheme masterminded by Osborne. But May has said that she wants investment across the country, raising questions about the future of the so-called “Northern Powerhouse.”

TOUGH HOME SECRETARY

May is only the second woman after Margaret Thatcher to take up residence at Number 10 Downing Street, and she is known for being just as tough as the “Iron Lady.”

She put in a grueling six years as head of the Home Office, which is regarded as the toughest department in UK government. She also took on Russia's President Vladimir Putin over the killing in Britain of former KGB agent Alexander Litvinenko.

Now charged with the task of negotiating the tricky exit from the European Union, she's promised to be “bloody difficult” in her dealings with EU leaders.

She is yet to directly address Britain's relationship with China, but her words and actions over the coming weeks will be closely scrutinized.

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