In a sharp rebuke, China has condemned the newly signed trade agreement between the United Kingdom and the United States, accusing the two allies of embedding restrictive clauses designed to marginalize Chinese products and companies.
The Chinese foreign ministry criticized the deal as containing “poison pills” that are more harmful than tariffs, arguing it could effectively force British firms to restructure their supply chains to exclude Chinese inputs. “Cooperation between states should not be conducted against or to the detriment of the interests of third parties,” a spokesperson said, reiterating Beijing’s stance that international agreements should uphold fairness and not target specific countries.
The UK-US trade pact, finalized last week, offers limited tariff reductions in return for stringent compliance with U.S. national security requirements. Among the key provisions, the US has agreed to lower tariffs on British car exports from 27.5% to 10% for an annual quota of 100,000 vehicles. Furthermore, tariffs on UK steel and aluminium have been lifted — but only if British firms adhere to new rules demanding comprehensive supply chain transparency and detailed disclosures on ownership, which many analysts interpret as measures aimed at excluding Chinese entities.
Beijing sees these stipulations as indirect sanctions that foster economic exclusion under the guise of security concerns. “This is economic coercion by another name,” one Chinese trade expert remarked.
While London has hailed the agreement as a step forward in post-Brexit trade diversification, critics within the UK and abroad warn that the costs of compliance — and the geopolitical repercussions — could outweigh the immediate economic benefits. As tensions continue to rise between China and Western powers, the trade pact risks further entrenching global supply chains along geopolitical lines.
