China Criticizes U.S.-U.K. Trade Deal Over Supply Chain Exclusion Concerns

China has condemned the recently signed trade agreement between the United States and the United Kingdom, warning that the pact could undermine Chinese access to British supply chains and damage international cooperation, as per Fox News.

The deal, finalized last week, includes stringent security provisions affecting key British industries such as steel and pharmaceuticals. According to the Financial Times, these clauses could effectively limit Chinese products and ownership from entering or remaining in those supply chains — a development that has sparked concern in Beijing.

“Cooperation between states should not be conducted against or to the detriment of the interests of third parties,” China’s foreign ministry said in a statement to the FT, emphasizing that it is a “basic principle” of international relations.

China Warns Against Being Squeezed Out of Global Trade

Beijing has voiced increasing concern that President Donald Trump’s administration is leveraging trade negotiations to encourage partners to cut China out of their economic ecosystems. The ministry’s statement follows a broader warning from Chinese officials urging other countries not to sign deals with the U.S. that could compromise Chinese interests.

The U.S.-U.K. trade agreement offers limited tariff relief on British exports — including car and steel products — but maintains a 10% baseline duty on other goods. The relief is contingent upon Britain complying with U.S. security requirements, including oversight of supply chain integrity and the ownership of industrial facilities, according to people familiar with the agreement.

British officials told the FT that the Trump administration made it clear that these provisions were specifically designed to limit Chinese involvement in U.K. industries.

Beijing “Shocked” by Security Clauses

Trade advisers in Beijing said the inclusion of these U.S.-driven security measures came as a surprise, particularly as U.K. Prime Minister Keir Starmer’s government has signaled a desire to stabilize and improve trade relations with China.

“China will need to respond — the U.K. should not have rushed to agree to the deal,” one Chinese government adviser told the Financial Times.

In response, a spokesperson for the U.K. government defended the agreement, saying it was designed “to secure thousands of jobs across key sectors, protect British businesses, and lay the groundwork for greater trade in the future.”

The government added that trade and investment with China “remain important to the U.K.” and that it continues to engage with Beijing in a “pragmatic” manner that aligns with national and global interests.