Tensions are rising again between the West and Beijing. China has strongly criticized the newly signed trade agreement between the United Kingdom and the United States, accusing both nations of deliberately crafting a deal designed to undermine Chinese interests. The agreement introduces new security conditions that could make Chinese goods unwelcome in British supply chains.

🔹 Beijing warns London against rash decisions

China’s Foreign Ministry issued a sharp rebuke to the UK, claiming the deal serves Washington’s anti-China agenda. The agreement comes shortly after the Trump administration announced its new plan for "reciprocal tariffs."

The situation is particularly sensitive for the British government, led by Prime Minister Keir Starmer, which has in recent months been quietly working to restore ties with Beijing. Those efforts now appear to be under serious strain.

A deal pulling the UK closer to the US

From China’s perspective, this agreement clearly aligns Britain with Washington. The main issue lies in the fact that tariff relief for UK exports, especially in the steel and automotive sectors, depends on complying with US security rules—rules that are explicitly aimed at China.

According to the Financial Times, British officials confirmed that Donald Trump made it clear that the security checks under Section 232 were designed to target China. These checks determine whether imports pose a threat to US national security. Beijing sees this as an attempt to push China out of global supply chains.

⚠️ China: This is economic pressure, not fair trade

Beijing reiterated that international trade agreements should not be used to attack third countries. In this case, the message is clear: China is the target. While the agreement is presented as a standard economic deal, Chinese officials claim it’s a strategic move to weaken China’s position in the UK market.

China's response: new strategies and softened rhetoric

Despite the harsh criticism, China is adapting quickly. It is adjusting its domestic policy to further accelerate the removal of foreign components from Chinese supply chains. This process was already underway, but bilateral deals like this are speeding it up.

At the same time, Beijing is trying to cool tensions. On Monday, the US and China agreed to a 90-day trade truce. As part of this, Washington lowered tariffs on Chinese imports from 145% to 40%. If the two sides reach an agreement on halting fentanyl precursor exports from China to the US, tariffs could be cut by another 20 percentage points.

China is also scaling back its own retaliatory tariffs, reducing duties on US goods, including energy and agricultural products, from 125% to just 10%. The move is aimed at keeping trade channels open and avoiding escalation, even as the UK appears to side with Trump's economic strategy.

London: Protecting jobs and future trade

Under pressure, the British government issued a statement saying the deal was signed “to protect British businesses, secure thousands of jobs, and lay the groundwork for future trade growth.”

London also insisted that trade and investment with China remain important, and that the UK will “continue to engage pragmatically in areas that align with the UK’s and global interests.”

Whether Beijing accepts that explanation remains unclear. What is clear, however, is that China now sees the UK as another player in Trump’s economic alliance—not a neutral partner.

🌐 One-Minute Summary:

Beijing has condemned the new UK-US trade deal as a move to squeeze Chinese goods out of international markets. The agreement includes conditions specifically targeting China and pushes the UK closer to the US in an ongoing trade war. In response, China is adapting its strategy while also trying to ease tensions.

#TradeWars , #Geopolitics , #Tariffs , #TRUMP , #TradingCommunity


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