Japan has issued a daunting challenge to Theresa May, UK prime minister, to negotiate a very “soft” British exit from the EU or risk seeing Japanese banks and other companies leave for the continent.
Mrs May, attending her first G20 summit in China, was also warned on Sunday by Barack Obama, US president, that strong business links between his country and the UK could “unravel” unless Brexit was handled carefully.
The British prime minister had been left in no doubt that Japanese and US companies invested in the UK partly as a base to reach the 500m consumers of the European single market, and that continued access was seen as vital.
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