China isn’t very happy with the U.S-UK trade deal, according to the Financial Times in a new report. In particular, the world’s second-largest economy is concerned that the trade deal could exclude Chinese products from British supply chains as a result of “strict security requirements for Britain’s steel and pharmaceuticals industries.”
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The news comes after the both the U.S. and China agreed to lower their tariffs on each other by 115% for 90 days.
Trade Agreements Should Not Target Other Countries, Says China
“Co-operation between states should not be conducted against or to the detriment of the interests of third parties,” said China’s foreign ministry to the FT.
A Chinese government official who requested anonymity noted that China will need to respond to the U.S.-UK deal, although it isn’t exactly clear how. “This type of poison pill clause is actually worse than the tariffs,” said the official.
The iShares China Large-Cap ETF has remained resilient in the face of the tariff drama with a year-to-date return of 14.42%.
