UK–US Deal: China’s Response and Türkiye’s Outlook

The bilateral trade agreement signed between the United Kingdom and the United States in early May 2025 has provoked a sharp response from China, highlighting the increasingly complex intersection of trade, security, and geopolitics. As reported by the Financial Times, the agreement introduces sector-specific tariff relief—particularly for British steel and automotive exports—conditional upon strict compliance with U.S. supply chain security requirements. These provisions, seen as targeting Chinese entities, reflect Washington’s broader effort to reconfigure global value chains to reduce dependency on Chinese components and ownership structures.

China criticized the deal on the grounds that international agreements should not harm third-party interests. According to China’s foreign ministry, such arrangements should not be conducted “to the detriment of the interests of third parties.” Chinese experts described the embedded “poison pill” clauses as more damaging than tariffs, warning that the U.S. may increasingly use such conditions in its bilateral engagements to isolate China economically.

The agreement places the UK in a diplomatically sensitive position. While London seeks to deepen ties with the U.S. following its exit from the European Union, it has also expressed a desire to maintain and improve trade and diplomatic relations with China. Prime Minister Starmer has emphasized that cooperation with China remains important, particularly in areas of mutual interest such as climate change, technology, and investment. However, accepting provisions that implicitly exclude China from UK supply chains may undermine efforts to rebuild trust with Beijing.

Implications for Türkiye

For Türkiye, the implications of this agreement are significant. As a strategically located country with diversified economic partnerships, Türkiye has long pursued a multidirectional foreign trade policy—balancing relations with the EU, the U.S., China, and regional actors. The UK–US agreement illustrates a potential shift in global trade norms, where economic deals increasingly include national security dimensions, potentially limiting the operational flexibility of third countries.

Türkiye’s growing engagement with China, particularly within the scope of the Belt and Road Initiative, and its ongoing trade negotiations with Western economies, must now be assessed in light of such evolving frameworks. The risk of being caught between competing regulatory expectations—especially in areas like advanced manufacturing, electronics, and pharmaceuticals—could increase. Therefore, Ankara should strengthen its strategic positioning by reinforcing domestic supply chains, adopting transparent compliance standards, and advancing its technological independence.

At the same time, Türkiye may find opportunity in presenting itself as a neutral and dependable partner capable of adapting to shifting trade dynamics without becoming entrenched in binary geopolitical alignments. Such a position requires careful policy calibration and diplomatic agility but could offer long-term resilience in an increasingly fragmented global trade environment.

The UK–US agreement and China’s reaction reveal the growing entanglement of trade and security considerations in international economic policy. For Türkiye, this signals the need for a forward-looking trade strategy that remains responsive to geopolitical shifts while preserving national interests and strategic autonomy.