China threatens the United Kingdom with retaliation if London imposes restrictions on Chinese electric vehicles

Cristiana Dida

21 October 2026, 14:37

International

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China has warned the United Kingdom that it will take retaliatory measures if London imposes restrictions on electric vehicles produced by Chinese companies. The warning comes as British officials advocate closer cooperation with the European Union to counter the expansion of China’s automotive industry.

A spokesperson for Beijing’s Ministry of Commerce said that China would “firmly” defend the legitimate rights and interests of its companies. The official urged the United Kingdom to comply with World Trade Organization rules and not follow the example of the European Union, whose tariffs on Chinese electric vehicles are considered discriminatory by Chinese authorities.

Beijing’s reaction was triggered by reports that London intends to act “in sync” with Brussels. British Trade Minister Anas Sarwar called for closer coordination, arguing that China’s rapid expansion poses a challenge to Europe’s automotive industry.

At the same time, the United Kingdom is negotiating with European partners to avoid a 10% customs duty on electric vehicles, which could take effect next year as a result of post-Brexit rules of origin. London is also seeking access to Europe’s “Made in Europe” policies.

Context: London and Brussels are preparing new trade rules for Chinese cars, while Beijing has already rejected an EU request regarding hybrids

Before the warning addressed to the United Kingdom, the British press reported that London was considering imposing customs duties on electric vehicles imported from China, citing concerns about unfair competition. London authorities stated at the time that no such duties had yet been introduced and that they were discussing taxation options in cooperation with the industry, against the backdrop of Brussels' plans to introduce “Made in Europe” rules.

The EU and the United Kingdom are discussing tariffs applied to Chinese cars and the possibility of London being included in the future “Made in Europe” rules, as Brussels feared that tariff differences could allow Chinese products to enter the European market through the United Kingdom.

In parallel with the debate on vehicles, China had rejected an EU request to voluntarily restrict its exports of hybrid cars to the EU, while the European Commission was considering a temporary trade protection measure involving tariff-rate quotas.