Britain’s showdown with the Chinese military in the South China Sea is threatening to derail a post-Brexit trade deal

A showdown between the British and Chinese navies in the disputed South China Sea could derail the two nations’ trading relationship after Brexit, the state-run China Daily newspaper has said.

The incident saw a British warship, HMS Albion, sail through waters claimed by China close to Chinese-occupied territories in the Paracel Islands in late August. The Chinese navy instructed the British vessel to leave the area, and the situation did not escalate further, according to Reuters.

The episode caused outrage from Beijing, which accused the UK of violating international law.