The state-run China Daily newspaper has said a showdown between the British and Chinese navies in the disputed South China Sea could derail the two nations' trading relationship after Brexit.<br />Business Insider reports that according to Reuters, the incident saw a British warship, HMS Albion, sail through waters claimed by China close to Chinese-occupied territories in the Paracel Islands. The incident happened in late August. The Chinese navy instructed the British vessel to leave the area. The situation did not escalate further.<br />The episode caused outrage from Beijing. It accused the UK of violating international law. <br />
