China Blasts US-UK Trade Pact, Labels Security Clauses ‘Poison Pills’ Targeting Beijing

Beijing accuses London of undermining fair trade by siding with Washington’s security-focused deal conditions that could isolate Chinese suppliers.

May 15, 2025: Beijing/London:
China has sharply criticized the recently signed UK-US trade agreement, calling it a veiled attempt to economically isolate China through what it terms “poison pill” clauses. Beijing warned that the deal’s strict security provisions go beyond trade liberalization and are aimed at excluding Chinese products and suppliers from global supply chains.

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The agreement, signed last week, offers the UK partial relief from US tariffs—such as lowering duties on British car exports from 27.5% to 10% for up to 100,000 vehicles annually and lifting levies on UK steel and aluminium. But these concessions are conditioned on compliance with US security protocols, including detailed reviews of supply chains and ownership structures—provisions widely interpreted as efforts to curb Chinese involvement.

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“Cooperation between states should not come at the expense of third parties,” said a spokesperson from China’s Foreign Ministry, implying that the deal violates principles of fair international engagement.

Zhang Yansheng, a senior researcher at the China Academy of Macroeconomic Research, was more blunt, calling the embedded conditions “poison pills worse than tariffs.” He noted that such clauses could pressure British firms to dismantle links with Chinese manufacturers, branding the move as unfair and potentially damaging to global economic integration.

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In response, China is doubling down on its “dual circulation” strategy, which aims to reduce reliance on foreign supply chains and boost domestic capabilities in sectors like green tech and high-end manufacturing.

Despite the sharp rhetoric, the UK government struck a more conciliatory tone. A government spokesperson reiterated that China remains an important trading partner, emphasizing that Chancellor Rachel Reeves’ recent visit to Beijing was part of ongoing efforts to revive economic dialogue that had been stalled since 2019.

The broader pact also includes expanded access for US beef and ethanol exports to the UK and proposes deeper cooperation in pharmaceuticals and advanced manufacturing, again contingent on adherence to American security criteria.

As geopolitical tensions escalate, the deal marks yet another alignment between Western allies on supply chain security—a move Beijing views as part of a broader effort to contain its global economic influence.

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China UK US trade deal, China response to UK US trade pact, poison pill clauses, US-UK tariffs, Chinese exclusion from supply chains, Rachel Reeves China visit, dual circulation strategy, UK trade policy, US-China tensions, UK-China relations