BEIJING – China has issued a strong rebuke against a new trade agreement between the United Kingdom and the United States, which it claims could be used to edge Chinese products out of British supply chains.

China’s Ministry of Foreign Affairs stated that it is a fundamental principle of international relations that cooperation between countries should not come at the expense of a third party.

“Cooperation between countries should not be carried out at the expense of third-party interests,” a spokesperson for the Chinese Foreign Ministry told the Financial Times on Wednesday (14/5).

The agreement, the first major trade deal signed by the US administration since implementing sweeping global tariff policies, includes a clause for coordination on tackling non-market policies of third countries.

Although unnamed, the clause is widely believed to target China, with the aim of preventing the UK from serving as a backdoor to circumvent US trade and security policies on Chinese goods.

The move puts the UK government in a difficult position, particularly under Prime Minister Sir Keir Starmer, who has been working to balance trade ties between the world’s two largest economies, the US and China.

Relations between London and Beijing had begun to improve since the Labour Party took office, following tensions under the previous Conservative administration.

UK Chancellor of the Exchequer Rachel Reeves visited China in January 2025 and claimed to have secured a £600 million deal expected to benefit the UK economy over the next five years.

Meanwhile, under the UK-US agreement, the US has agreed to lift its 25% tariffs on British steel and aluminium exports.

In return, the UK will grant greater access to American agricultural products. The tariff on British car exports to the US will also be reduced to 10% for the first 100,000 units, although the base 10% tariff remains for most products.

Responding to China’s criticism, a UK government spokesperson stated, “This agreement was made in the UK’s national interest, to protect thousands of jobs and unlock greater trade opportunities in the future.”

The government also stressed that the UK remains open to investment from all countries, including China. (EF/ZH)