John Prescott, the former deputy prime minister has warned that investment in Britain will only remain attractive to China if the nation stays in the EU.
He said that “fundamental changes” were necessary to prevent further descent into a federal Europe, reported the Huffington Post.
He told the Murnaghan programme on Sky News that David Cameron was increasingly giving the impression Britain could leave, which he said would deter investors.
Cameron has pledged an in-out referendum on Europe if his party wins the next general election, in a bid to win back voters who have defected to Ukip.
Lord Prescott, who was chairman of the Government’s China task force, said that both Japan and China will be under the impression that investment in Britain is good—only if the nation has access to the European market which has around 450 million people.
His comments come as the Government is expected to relax visa rules to encourage more Chinese businesses to invest in Britain following criticism by Beijing that it is too difficult for investors to enter the UK, reported the Huffington Post.