UK dismisses Chinese concerns on trade
The UK government has rejected Chinese criticism of its newly-inked US trade deal, in an effort to allay worries that ties between the world’s second largest economy and Britain would deteriorate.
Labour have said that China’s economy was not being intentionally “undermined” in the deal, which saw tariffs on steel fall to zero per cent and taxes on UK car exports get cut to ten per cent for a quota of 100,000 units.
In a statement reported by the BBC, the government claimed that there was “no such thing as a veto on Chinese investment”.
It also stuck by the assertion that the deal with the US was in the “national interest” to save thousands of jobs in manufacturing from getting lost and developing future deals in the future.
The official comments came in reaction to a report in the Financial Times quoting a Chinese foreign ministry official as claiming trade deals should “not be conducted against or to the detriment of third parties”, which appeared to represent indirect criticism of the UK.
Labour ministers have moved to boost bilateral trade between the UK and China, which is worth some £98bn.
Chancellor Reeves and foreign secretary David Lammy have been some of the ministers to have visited mainland China since last July.
Trade minister Douglas Alexander is the last known senior official to have travelled to the country around a month ago.
But this week’s exchange of public comments brings some of the friction in trade tensions to light.
Reynolds blamed British Steel owner Jingye, which is Chinese-owned, for the near-closure of blast furnaces, claiming at one point that previous governments had been “naive” in allowing Chinese companies to run the steel plant.
Trade and diplomatic tensions
China’s embassy to the UK suggested ministers were slandering the world’s second largest economy as they accused the government of “arrogance, ignorance and a twisted mindset” over criticism of British Steel’s owners.
Its application for a new “super-embassy” in London at the Royal Mint Court, close to the City of London, is still yet to be approved by the British government.
The Metropolitan Police have reportedly said that it had “concerns” about security at the embassy despite dropping an official objection to the proposal.
The dispute over the building of a new embassy uncovers some of the diplomatic tensions that remain between the UK and China under a new Labour government.
The country is particularly sensitive about trade relations after it retaliated heavily against President Trump’s so-called ‘Liberation Day’.
But China itself secured a deal with the US after meetings were held in Geneva last weekend, bringing President Trump’s treatment of the country closer in line with tariffs imposed on other countries.