China has issued a strong warning to the UK following the recent UK-US trade agreement, accusing Britain of siding with Washington in a move that may lead to the exclusion of Chinese goods from British supply chains.
The new deal, signed last week, grants limited tariff relief for British car and steel exports to the United States. However, this access is conditional on strict US security rules, which include in-depth scrutiny of supply chains and ownership – widely interpreted as a means of limiting Chinese involvement.
Beijing argues that such agreements should not target third-party countries and criticised the deal as a breach of basic international principles. China’s foreign ministry stated that bilateral cooperation should not come at the expense of other nations’ interests.
The Chinese government is particularly concerned that the UK is being drawn into US efforts to economically isolate China by pressuring partners to reduce reliance on Chinese products. In response, China is stepping up its “dual circulation” strategy, which focuses on increasing domestic production and reducing foreign dependency. State-supported industries are being urged to shift to local suppliers, especially in areas like green energy and advanced manufacturing.
Under the new agreement, the US will reduce tariffs on British car exports from 27.5% to 10%, capped at 100,000 vehicles per year. Additionally, tariffs on British steel and aluminium will be lifted, but only if companies meet the US’s tight security criteria, especially around transparency in supply chains and foreign ownership. These conditions are seen as mechanisms to curtail Chinese participation.
The deal also expands US access to UK markets, with higher quotas for beef and ethanol exports. Future cooperation on pharmaceuticals and advanced manufacturing is also on the table, again contingent on British adherence to American security standards.
The timing of this trade deal is especially delicate. Prime Minister Keir Starmer’s government has been trying to improve ties with China. Despite growing tensions, Downing Street insists the trade deal is designed to safeguard jobs and support British industries.
A UK Government spokesperson reaffirmed that trade and investment with China remains important, describing Britain’s approach to international relations as balanced and pragmatic.
Earlier this year, Chancellor Rachel Reeves travelled to Beijing to relaunch economic and financial discussions that had been inactive for six years. However, the latest trade developments have prompted fresh criticism from Chinese officials, who see the deal’s terms as a setback to diplomatic progress.
Zhang Yansheng, a senior researcher at the China Academy of Macroeconomic Research, said Britain’s acceptance of the US terms was unfair to China. He described the clauses as “poison pills” even more damaging than tariffs.
