The UK's vote to leave the EU has created uncertainty regarding the global economy as the financial market is already being clobbered on suspicion of Brexit fallout, said Premier Li Keqiang on Monday.

"Under the circumstances, the world community should tackle these challenges and seek solutions together for economic growth and recovery," said Li during the Annual Meeting of the New Champions, a World Economic Forum (WEF) event known as the Summer Davos, held in Tianjin between June 26 and 28.

The Brexit decision last week sent shockwaves throughout the world as global stock markets plunged and the sterling' value plummeted.

The premier tried to reassure that China (FXI, quote) would be able to maintain economic stability this year and in the long-term despite market volatility and uncertainty after the vote.

Li emphasized that the country will continuously commit to maintaining sound relationships with both the EU and the UK, saying that China wants to see a united and stable EU as much as a prosperous UK.

This came after the Chinese foreign ministry spokesperson Hua Chunying reiterated the government's official line in respect of the choice made by the British people.

Impact on China

The British Prime Minister's decision to resign following the loss of the "Remain" vote in the referendum puts into question the multibillion dollar Sino-UK cooperation agreements during Chinese President Xi Jinping's state visit to the UK last year and the possible loss of Chinese (ASHR, quote) investors who have stakes in the UK.

Xu Shaoshi, chairman of the National Development and Reform Commission, the country's top economic planning body, agreed that Chinese investors in the UK may see their asset values drop in the immediate future as a result of market fluctuations.

While acknowledging the possible impact on China's economy via investment, trade and capital, Xu speculated it to be quite small and relevant government departments have made contingency plans to cushion the blows.

"For Chinese firms that are going to invest or carry out mergers and acquisitions, entrepreneurs are smarter than me, and they will definitely wait and see," he said.

Li Daokui, an economics professor with Tsinghua University, argued that China might be the least-affected economy in the world following the Brexit incident.

"The only short-term impact I can think about is the exchange rate of the renminbi, but I do think within a few trading sessions that situation will very quickly be subdued."

Li also added that the UK's vote to leave the EU will possibly weaken the Euro's status.

"This means a new global currency is needed to compete with the US dollar in international trade and finance," explained the economist who viewed it an opportunity for the internationalization of the Chinese Renminbi.

Zhang Yuyan, director at the Institute of World Economics and Politics (IWEP), echoed Li's opinion, and added that the Brexit comes as a shock but by no means a crisis for Chinese enterprises which have stake in the UK.

"Britain accounts for less than 1 percent of the world's population, and its GDP takes up no more than 2 percent of the world's total in terms of purchasing power," said Zhang. "A Brexit scenario casts a shadow on market confidence in the short term but the impact will gradually dissipate in the medium and longer term."

During a session at the height of the WEF event, Li Baodong, China's vice foreign minister, said the Brexit decision came as a sudden challenge but that there must not be panic.

He hoped that the EU and the UK will see through a stable transition following the latter's referendum and China is ready to provide help in this respect.

Content Curiosity of China.org.cn