China's Ministry of Commerce threatens countermeasures if UK aligns with EU on tariffs for Chinese EVs

During a press briefing on October 19, 2027, a spokesperson for China's Ministry of Commerce was asked to comment on reports that UK minister for trade Lord Anas Sarwar had indicated that the UK and the EU must “work together and act in lockstep” to tackle China’s dominance in the automotive sector.

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Sawar told Politico during the 2026 German-British Business Summit that discussions with European partners on the possibility of tariffs on Chinese electric vehicles were ongoing.

"The automotive sector and partnership remain strong, but do we have to grapple with the challenge that comes from rapid expansion in China? Of course we do,” he said. “The more that the UK and the EU work together and act in lockstep, the better it is for both the UK and the European Union.”

Sawar's comments followed the announcement of a deal between France and Germany on the direction of the European automotive industry that would open the door to the UK potentially being recognised as a trusted partner in the EU's 'Made in Europe' rules, but only if the country were to follow the EU's lead on trade protection measures to address competition from China.

The Ministry of Commerce spokesperson in China said that they had taken note of the reports and urged the UK government to "think carefully" before aligning itself with the EU on this matter.

"Cooperation between China and the UK in the automotive industry is based on complementary strengths and is mutually beneficial and conducted on an equal footing," said the spokesperson in a statement, translated from Mandarin.

They added that the UK should make sure to abide by World Trade Organization (WTO) rules and not blindly follow the EU, noting that China will closely monitor the UK’s moves.

"Should the UK insist on imposing restrictive measures on Chinese electric vehicles, China will take resolute countermeasures to safeguard the legitimate rights and interests of Chinese industries," the spokesperson concluded.

While the EU has had tariffs on Chinese battery-electric vehicle (BEV) imports since 2024, the UK has not currently introduced any China-specific EV tariffs.

New SMMT vehicle registration data highlights the rapid growth of Chinese OEMs in the UK: five of the top 10 best-selling BEV models so far this year are from Chinese brands, including Tesla, which manufactures a significant proportion of its vehicles in China. Tesla’s Model 3 and Model Y occupy the top two spots, followed by BYD’s Sealion 7 and Seal, while the Leapmotor B10 has been the 10^th best-selling BEV of 2026 to date.

The UK government must carefully weigh the potential benefits of closer alignment with the EU against the risk of provoking retaliatory measures from China, as well as the implications this could have for investment from Chinese automakers.

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Some Chinese OEMs are expanding their presence in the UK beyond vehicle exports. For example, Chery Group is investing heavily in the localisation of its manufacturing and supply chain operations in the UK. Following the signing of a memorandum of understanding with Nissan, Chery Group is planing to assemble vehicles from knock-down (KD) kits – shipped from China – at Nissan's plant in Sunderland.

The automaker has also invested in talent both at its Omoda and Jaecoo headquarters in London and its new Chery Commercial Vehicle headquarters in Liverpool, as well as partnering with Nottingham College to establish a centre for training and development for its UK dealer network.

Additionally, EV brand AION – a joint venture between Chinese-headquartered GAC Group and Jameel Motors – recently revealed that it has established a dedicated UK parts warehouse in partnership with DHL Supply Chain. Ben Hurford, aftersales director at AION Auto UK, said that this investment in service parts logistics demonstrated the company's commitment to long-term investment in the UK market and its customers.

This trend can also be seen more broadly across Europe, with examples such as SAIC Motor's decision to establish its first mainland European MG manufacturing facility in Spain, as well as collaborations like the Stellantis-Leapmotor joint venture and the Ford-Geely partnership – both also based in Spain.

Greater localisation could reduce Chinese OEMs’ exposure to tariffs on vehicles imported from China, depending on where vehicles are produced and the rules governing the measures. But it would not insulate their wider operations from trade tensions, while the prospect of retaliation could create uncertainty for companies weighing further investment. The UK therefore faces a choice not simply between protecting its automotive industry and maintaining access to Chinese vehicles, but also over how to balance trade protection, access to European markets and the investment needed to develop domestic automotive production and supply chains.