European officials are carefully examining the recently announced US-UK trade agreement for clues about how President Trump might influence them to adopt more stringent policies toward China. The deal's emphasis on aligning supply chain security with the US is seen as a subtle yet significant pressure tactic against China.
While China isn't explicitly named, experts believe it is the primary target. The agreement focuses on areas like forced labor, data security, and economic security, all of which are perceived as veiled references to China's practices. Sam Goodman of the China Strategic Risks Institute highlighted the deal's language on these aspects as clearly indicating China is the central concern.
The agreement includes specific requirements for Britain to meet US demands regarding supply chain security for steel and aluminum, which observers interpret as a direct response to Chinese involvement in these industries. The document also seeks to align Britain with US security concerns in sectors subject to Section 232 investigations, with the pharmaceutical sector currently under review.
Henry Gao, a professor at Singapore Management University, suggests that this China-focused approach in the US-UK trade deal will likely become a recurring theme as countries globally try to avoid US tariffs.