China has warned the UK about its new trade agreement with the United States, accusing the UK of being consistent with the United States, which could force British companies to exclude Chinese products from their supply chains.

The UK trade deal signed last week has limited tariffs on U.S. automobile and steel exports, but only if it meets strict U.S. safety requirements. These conditions include review of supply chains and ownership structures - a move that has been widely interpreted as targeting Chinese participation.

Beijing believes that the agreement violates the principle that international agreements should not target third countries and points out that this is a "basic principle."

The Chinese Foreign Ministry criticized the agreement in a statement from the Financial Times. It said: “Cooperation between countries should not object to or harm the interests of third parties.”

Beijing is concerned that the terms are intended to pressure allies to exclude Chinese products, and are actually economically isolated.

China doubles what it calls “double circulation” – strengthens domestic production and resilience so that its economy can flourish. State-backed companies push to locally sourced components, ministries are providing support to advanced manufacturing and green technology.

Under the UK-US agreement signed last week, the United States agreed to reduce tariffs on UK car exports from 27.5% to 10%, applicable to the quota of 100,000 vehicles per year. As long as UK companies meet strict U.S. security conditions, especially in supply chain transparency and foreign ownership surround supply chain transparency and foreign ownership, these measures implicitly limit China's participation, but tariffs on UK steel and aluminum have also been lifted.

The deal also includes liberalized quotas for exports of US beef and ethanol to the UK, as well as a commitment to explore deeper collaboration in pharmaceuticals and advanced manufacturing, again dependent on the UK’s compliance with U.S. security regulations.

Given that Keir Starmer's administration has been seeking to improve relations with China, the timing of the UK-US trade agreement is sensitive. Despite tensions, No. 10 said the trade agreement is designed to ensure employment and protect British businesses.

A UK government spokesman insisted that “trade and investment with China remain important to the UK”, highlighting a practical approach to international relations.

Earlier this year, Prime Minister Rachel Reeves visited Beijing to restart the six-year dormant economic and financial dialogue.

Other Chinese officials have also criticized Britain's decision to accept the terms of the U.S. deal, viewing it as a divergence from their efforts to rebuild bilateral relations. Zhang Yangshang, a senior researcher at the China Institute of Macroeconomic Studies, said that the UK's actions were "unfair to China." He described the terms of the deal as "poison", which was worse than the tariffs.