China slams UK trade deal with US: FT
3 Min Read
China criticizes a new UK-US trade agreement, warning that clauses aimed at excluding Chinese products threaten Beijing’s interests and strain UK-China relations amid ongoing global trade tensions.
-
Steel rods produced at the Gerdau Ameristeel mill in St. Paul, Minn., await shipment on May 9, 2019. (AP)
China has sharply criticised a newly signed trade agreement between the UK and the US, warning that provisions aimed at excluding Chinese products from British supply chains threaten Beijing’s interests and undermine international cooperation, The Financial Times (FT) reported on Tuesday.
Responding to the agreement, which includes strict security measures for the British steel and pharmaceutical sectors, China’s Foreign Ministry stated, "Co-operation between states should not be conducted against or to the detriment of the interests of third parties."
According to FT, the comments underscore growing concerns in Beijing that Washington is using bilateral trade deals to pressure its allies into distancing themselves from Chinese supply chains, complicating London’s recent efforts to reset ties with China.
UK-US trade deal sparks diplomatic tensions
The deal marked the first formal trade agreement under President Donald Trump since his announcement of sweeping "reciprocal tariffs."
The report detailed that the agreement includes targeted relief for British exports, specifically steel and cars, on the condition that the UK complies with US national security requirements, including assessments under Section 232 investigations.
While the deal offers tariff reductions, it does not eliminate the baseline 10% tariff on most British goods. British officials, in turn, confirmed that the deal’s supply chain clauses explicitly limit Chinese involvement, according to FT.
According to UK government advisors, these conditions caught Beijing off guard, especially since PM Keir Starmer’s administration had recently signaled a desire to deepen UK-China relations.
Strategic risks for the UK in balancing relations
The Financial Times argued that the deal places the UK in a precarious position between two global economic superpowers.
Chinese officials warned Britain’s quick alignment with US demands could damage diplomatic relations. “China will need to respond; the UK should not have rushed to agree to the deal,” a Chinese government advisor who requested anonymity told the Financial Times.
In turn, Zhang Yansheng, a senior researcher at the China Academy of Macroeconomic Research, criticized the deal’s restrictive clauses, stating that "This type of poison pill clause is actually worse than the tariffs. For the UK to do this, it’s not fair to China."
He explained that while China is expected to raise the issue in trade discussions with the UK, any immediate retaliation should be avoided, framing the US as the primary driver behind these measures.
