China has issued sharp criticism of the newly signed US-UK trade agreement, arguing the deal improperly targets third-party nations. The Chinese foreign ministry stated cooperation between countries “should not be conducted against or to the detriment of third parties,” directly challenging provisions that could exclude Chinese products from British supply chains.
The controversial agreement includes stringent security requirements for UK steel and pharmaceutical exports to America. While reducing some Trump-era tariffs on British goods, the pact maintains a baseline 10% duty while imposing new conditions on supply chain security and production facility ownership. UK officials confirmed these measures specifically aim to limit Chinese influence in critical sectors.
Beijing’s rebuke comes despite recent progress in US-China trade relations. Just days before criticizing the Anglo-American deal, China agreed with the US to temporarily reduce reciprocal tariffs by 115% for 90 days. This contrast highlights China’s determination to oppose what it views as exclusionary trade practices, even while negotiating with Washington.
UK government advisers expressed surprise at London’s acceptance of the US security clauses, particularly as Prime Minister Keir Starmer’s administration had been pursuing warmer ties with Beijing. One Chinese adviser warned “China will need to respond” to the agreement, suggesting potential retaliatory measures may follow.
The British government defended the pact as necessary to protect domestic industries and jobs, while maintaining that trade with China remains important. However, the deal’s explicit focus on reducing Chinese participation in supply chains has clearly drawn Beijing’s ire, potentially complicating future UK-China economic relations.
This development underscores growing tensions in global trade diplomacy, where nations increasingly face pressure to choose between economic partnerships with China or the United States. As negotiations continue, the international business community watches closely for potential ripple effects across global supply chains.
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