LONDON — China has warned the United Kingdom against what it called "discriminatory" measures as Britain considers imposing tariffs on Chinese-made electric vehicles in exchange for joining the European Union's trade protection scheme.
Downing Street announced Friday it would "welcome the objective to have the UK included in the Industrial Accelerator Act," following France's decision to drop its objection to British participation. The shift opens the door to UK inclusion in what the EU calls the "Made in Europe" framework.
The scheme aims to counter subsidized Chinese imports by granting preferential treatment to products manufactured within the EU. Britain and other non-EU nations including Norway have expressed concern about losing market access if excluded.
A Franco-German proposal presented Thursday outlined conditions for UK membership. It would require Britain to align with EU trade defense measures, including tariffs on Chinese electric vehicles that the bloc imposed in 2024.
The Chinese embassy in London said it was "firmly opposed to any discriminatory practice involving tariff hikes or restrictive measures on Chinese products" and had raised "serious concern to the UK side regarding the reports in question." The embassy said "trade protectionism runs counter to WTO rules and market principles."
Business Secretary Jonathan Reynolds said this week that the UK would not be forced to align with EU trade policy. But the British government has actively pursued inclusion in the scheme.
UK officials worry that exclusion from the package could cost billions of pounds in automotive trade and cut British car makers out of EU supply chains.
A No. 10 spokesperson said speculation about deal terms was "premature." The spokesperson confirmed the UK's independent trade policy keeps all tariffs under review and that talks with the EU continue.
The spokesperson added that the government works closely with the British automotive sector to ensure its trade approach reflects industry interests.
EU lawmakers are expected to finalize the Industrial Accelerator Act by the end of this year or early 2027. Members of the European Parliament have tabled 5,100 amendments to the legislation, including one that specifically provides for UK participation.
Mercedes-Benz CEO Ola Källenius, who also heads the European car trade body ACEA, warned earlier this week that excluding the UK would be a "deliberate choice" by EU leaders to "hurt" the bloc's auto industry.
