China has criticised the UK-US trade deal in a potential blow to the Government’s bid to revive relations with the country.
Beijing said it was a “basic principle” that such agreements should not target other nations.
Britain’s deal with America, which was the Trump administration’s first since it unveiled sweeping global tariffs last month, includes an agreement to co-ordinate to “address non-market policies of third countries.”
It is understood that this clause is intended to prevent the UK becoming a “backdoor” for circumvention of American measures on trade and security in relation to nations such as China through its exports to the country.
“Co-operation between states should not be conducted against or to the detriment of the interests of third parties,” Beijing’s foreign ministry told the Financial Times.
The statement poses difficulties for Sir Keir Starmer’s Government as it seeks to navigate its trading position between two economic superpowers.
Relations between London and Beijing have thawed under Labour, with a resumption of high-level engagement following years of little contact under the previous Tory administration.
Chancellor Rachel Reeves visited the country in January, saying agreements worth £600 million to the UK over the next five years had been reached on the trip.
Meanwhile, the deal agreed between Britain and the US removes the 25% tariff rate on UK steel and aluminium exports in exchange for giving America’s agricultural industry greater access to British markets.
American levies on British cars fall to 10% for the first 100,000 vehicles exported to the US, but a 10% baseline tariff on most goods remains in place.
A Government source said it was “for other countries to determine what is in their national interest” and that the UK “continues to be open to investment from a wide range of countries including China.”
A Government spokesperson said: “This Government signed a deal with the US in the national interest to secure thousands of jobs across key sectors, protect British businesses and lay the groundwork for greater trade in the future.
“In line with our long-term, consistent approach, trade and investment with China remain important to the UK. We are continuing to engage pragmatically in areas that are rooted in UK and global interests and co-operate where we can, compete where we need to, and challenge where we must.”
This article was written by PA Political Correspondent and Nina Lloyd from Press Association and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.