EAST Lancashire business bosses and politicians were today keeping their fingers crossed that the Chinese stock-market crash would not hit the local economy and residents’ pockets.

Several major firms in the area trade with China — notably whiteboard manufacturer Promethean World in Blackburn and Rolls-Royce which has two factories in Barnoldswick.

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Other major companies with interests in the the world’s fastest-growing eco- nomy include Burnley upholstery firm Panaz Holdings and Blackburn wallpaper manufacturer Graham Brown, which has an office in China handling an export business worth £3 million.

Turmoil in the Chinese economy and sharp falls in its Shanghai stock market sent shockwaves around the world this week.

Yesterday, the People’s Bank of China cut its main interest rate, boosting previously plummeting global share prices. East Lancashire Chamber of Commerce has encouraged local firms to look to China as an export market in recent years.

Former Foreign Secretary and ex-Blackburn MP Jack Straw said: “I do not think too many companies in East Lancashire are over-dependent on trade with China although companies like Rolls-Royce, Graham & Brown and Promethean World do export there. China remains a key export market for consumer goods and services.

“I do not think local companies have too much dependence on China to be unable to ride the up and downs of its stock market.

“On the upside, the current problems should keep inflation down and put any interest-rate rise further away.”

Pendle MP Andrew Stephenson hopes that the problems in Beijing will not affect Rolls-Royce which this year secured a major contract with Air China for its Trent 1000 engines partly produced in Barnoldswick.

He said: “I hope that the impact of China’s economic troubles on East Lancashire will be limited, although it could affect people’s pensions. Rolls-Royce is such a blue-chip company that I do not expect its dealings with China to suffer.”

Panaz chief executive Tony Attard said: “The situation relating to the fall in the Chinese stock market is a result of a market that has been subject to over-speculation. As far as Panaz is concerned, China is a fantastic market with huge potential for UK companies. Even with the stock market down, the Chinese market will continue to grow.”

Cllr Mark Townsend, leader of Burnley Council, said: “Burnley firms export all over the world so the town’s companies do not have all their eggs in one basket.”