China has criticised the newly signed trade agreement between the United States and the United Kingdom, warning that bilateral pacts should not be used to “target or harm any third party”.
Deal could compromise China indirectly
The reaction from Beijing came after revelations that provisions in the deal could restrict Chinese components from entering British supply chains – particularly in sensitive sectors such as automotive manufacturing.
Chinese Foreign Ministry spokesperson Lin Jiang said in a press conference, “Cooperation between countries should not target or harm any third party,” revealing Beijing’s concern that the supply chain clauses in the US-UK agreement are aimed squarely at China.
The trade pact – hailed by the US administration as the first under Donald Trump’s multiply revised tariff framework – includes the removal of tariffs on British steel and cars, contingent on the UK meeting US demands around supply chain security and ownership transparency.
According to UK officials cited by the Financial Times, these measures were designed with the explicit intent of limiting Chinese involvement.
Broader message to US allies
Analysts suggest the warning from Beijing serves as a broader message to what were previously strong US allies, including Australia, about the risks of aligning too closely with Washington.
Dr Yu Jie, a China expert at Chatham House, said that countries with deeper trade integration with China will need to tread carefully.
Australia currently faces a 10% baseline tariff on exports to the US and may come under pressure as it considers how to respond to similar conditions in future negotiations.
The UK has attempted to navigate complex post-Brexit relations with both China and the US.
It restarted economic and financial talks with Beijing earlier this year, but the new trade agreement with Washington could complicate efforts to maintain balanced diplomacy.
Despite recent concessions from China – including a 90-day pause on non-tariff measures against 17 US entities and a reduction in tariffs on American goods – officials have made clear they will respond to trade exclusions.
China’s Ministry of Commerce noted last week that while it seeks “mutually beneficial” cooperation, it will “resolutely safeguard the legitimate rights and interests of Chinese enterprises”.