China criticized the trade agreement between the U.S. and the U.K. that could potentially push Chinese products out of British supply chains, according to a report.
The deal reached between America and Britain last week includes strict security requirements for the U.K.’s steel and pharmaceutical industries.
When asked about the agreement, China said it’s a “basic principle” that countries should not target other nations when making deals, the Financial Times reported.
“Co-operation between states should not be conducted against or to the detriment of the interests of third parties,” China’s foreign ministry told the FT.
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China has warned countries not to sign trade deals with the U.S. that threaten Chinese interests over concerns that President Donald Trump will use negotiations with American partners to pressure them to cut China out of supply chains.
The trade agreement reduced the Trump administration’s tariffs on British car and steel exports, but retained a baseline 10% duty on British goods.
The tariff relief for steel and cars was secured on condition that the U.K. “works to promptly meet U.S. government requirements” on supply chain security and the “ownership of relevant production facilities,” according to the FT. British officials said Trump emphasized that China is the intended target of this condition.
The deal states that tariff relief for British products would depend on investigations that determine how certain imports impact U.S. national security.
The U.K.’s acceptance of U.S. security clauses shocked Beijing, especially as Prime Minister Keir Starmer’s government had been working to improve relations with China, trade-focused government advisers told the FT.
“China will need to respond — the UK should not have rushed to agree to the deal,” one Chinese government adviser told the outlet.
The U.K. government said it signed the trade deal with the U.S. “to secure thousands of jobs across key sectors, protect British businesses and lay the groundwork for greater trade in the future,” the outlet reported.
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“Trade and investment with China remain important to the UK,” the U.K. government added, noting that it was “continuing to engage pragmatically in areas that are rooted in U.K. and global interests.”
On Monday, China and the U.S. agreed to cut reciprocal tariffs by 115% for 90 days while officials continue to negotiate a trade deal.
The two countries with the world’s biggest economies have been involved in a trade war in recent weeks.
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