By Victor Z. Gao, Chairman of China Energy Security Institute and Vice Chairman of Sino-Europe United Investment Corporation

Since the American Revolution in the 1770s, and especially since the end of the Second World War in 1945, the United Kingdom (UK) is the country from which many former colonies wanted their independence. In living memory, Brexit is the first significant instance whereby the UK wanted to be independent from another major entity, in this case the European Union (EU). What a change of fortune for the UK!

Now that the dice has been cast, what are the major implications of Brexit?

1.Brexit may cause "Scot-in". Rather than being the end of the story, Brexit may be the first chapter of a long saga. Brexit may likely result in "Scot-in", meaning that Scotland may join the EU as an independent country, after Scotland would achieve independence from the UK. Even Northern Ireland may follow suit, although it may be less likely that Wales will exit the UK. When the dust finally settles, what we know as the UK today may end up as a ‘Disunited Kingdom’, or a ‘Lonely Kingdom’, which can hardly mirror the mighty Britain that erstwhile ruled half of the world.

2.The loss of innocence for the EU. Brexit has shattered the myth of an eternal union, indivisible, inseparable and ever expandable. Now that the UK is on the way out, what will other EU members think about their own relations with the EU, especially when major events take place that will impact their relations with the EU? Now that the loss of innocence has been inflicted on the EU, anything can happen. The possibilities are now endless and the probabilities are relative.

3.The long overhang. How long will it take to turn Brexit from a referendum decision into a reality? While Prime Minister Cameron of the UK said it may take two years, in reality it may take much longer. Part of the reason is that the UK knows for sure that the sooner Brexit is completed, the sooner the country will start losing out. This will be a deterrent for the UK to actually complete the Brexit process. Furthermore, there are no set rules and procedures to deal with an unprecedented event like Brexit. You need to cross the river by touching the stones, and in the middle of the river, you may want to refuse to touch the necessary stones. No quick closure of Brexit is expected any time soon. The Brexit overhang can be long indeed. 

4.Reduced to a local financial market? For centuries, and especially since the Thatcherian reforms of the UK in the 1980s, London has positioned itself as an important international financial center. Indeed, few other cities in the world deserve that title than London. After all, over the centuries, the British have not only drafted and polished many important financial theories, but also put them to good use, leveraging the vast British spheres of influence in the world, and in more recent times, the UK's involvement in the EU. Now that the UK is cutting itself off from the EU, and the influence of the UK in the world will continue to diminish and dwindle, a proud and lofty international financial center in London may indeed suffer a reversal of fortunes and be reduced eventually to a local financial market. By discarding much of its manufacturing capacities over the decades and focusing on its financial services, how can Britain survive if London's financial status keeps dwindling and diminishing in the coming years?

5.Will the EU become leaner and more efficient?  While Brexit is mainly an event orchestrated and executed by the British people themselves, Brexit also reflects in a fundamental way, the lack of efficiency and direction in Brussels. Will the EU wake up and put its own house in better order? Will the EU become leaner and more efficient? If yes, Brexit may be hailed as a catalyst for the revival of the EU. But who can be assured of that certainty? 

6.Double jeopardy? While Brexit is expected to inflict more injury on the UK itself than on the EU, the EU will also emerge as a net loser. To make the case worse, the EU may suffer from other collateral damages and injuries caused by Brexit, including the potential departure of other members from the EU. That may indeed be a double jeopardy for the EU. 

7.To unscramble a scrambled Egg. Unlike scrambling an egg, which can be a highly predictable and a value-enhancing process, to unscramble a scrambled egg can be highly uncertain, unpredictable, and unlikely to be of any value. Both the UK and the EU will need to unscramble an unprecedented and most complicated scrambled egg, with unknown risks and damages both to the UK and the EU. 

When the dust finally settles on Brexit, the UK and the EU may be profoundly transformed and different from today, and the world will need to accommodate both entities in a different manner.

( The opinions expressed here do not necessarily reflect the opinions of Panview or CCTV.com. )

Panview offers an alternative angle on China and the rest of the world through the analyses and opinions of experts. We also welcome outside submissions, so feel free to send in your own editorials to "globalopinion@vip.cntv.cn" for consideration.