LONDON - As the United Kingdom and the United States navigate fraught tariff negotiations, a senior White House official has injected a new note of discord into transatlantic relations.
In an interview with The Daily Telegraph, Peter Navarro, President Trump’s trade adviser and an architect of the administration’s combative tariff strategy, accused Britain of acting as a “compliant servant” to Beijing in its efforts to attract Chinese investment. He went so far as to liken China to a “vampire,” warning that deepening economic ties with Beijing could leave Britain exposed and vulnerable.
“If the Chinese vampire can’t suck the American blood, it’s going to suck the UK blood and the EU blood,” Navarro said, casting China’s global economic ambitions as a threat to Western prosperity. “This is a very dangerous time for the world economies with respect to exposure to China”
Navarro’s remarks arrive at a delicate moment for British officials, who are seeking to balance closer economic ties with both the European Union and China, even as they court a new trade agreement with Washington. Since Labour’s victory in last July’s general election, the government has promoted what it calls a “balanced” and “pragmatic” approach to China, insisting that isolating Beijing is neither realistic nor in Britain’s interest. Chancellor of the Exchequer Rachel Reeves and Foreign Secretary David Lammy have both traveled to China in recent months, emphasizing the need for stable, mutually beneficial relations. Reeves has described London as the “natural home” for Chinese capital.
The British government, for its part, responded with a measured statement. “This administration will always approach UK–China relations with clear-eyed vigilance and a coherent strategy,” a spokesperson said, adding that Britain’s trade policy remains focused on long-term prosperity without compromising economic or national security.
Navarro’s comments have not gone unnoticed in the British press. A recent commentary in iNews, headlined “The UK is no ‘servant of China,’ but the US is not the only game in town,” argued that the White House adviser’s broadside signals growing American hostility toward Britain and its European allies. The article noted that Navarro’s rhetoric reflects deep-seated anxieties in Washington about China’s substantial and growing investments in the UK. According to a report by Grant Thornton, by 2023, nearly a thousand British companies were effectively Chinese-owned, supporting more than 59,000 jobs and generating over £116 billion in revenue - a “significant contribution” to the UK economy.
The iNews commentary went further, suggesting that Navarro’s hardline stance, while consistent with the Trump administration’s approach, also reveals American vulnerabilities in the ongoing trade war. The aggressive tariff policies championed by Trump and Navarro have destabilized global trade relations, the article argued, and Navarro may be hoping to pressure Britain into adopting a tougher line on China to secure a favorable US–UK deal - even if such tactics risk backlash at home.
Britain has not escaped the fallout from Washington’s tariff escalation. While facing a baseline US tariff of 10 percent, the UK remains subject to the 25 percent duties imposed by Trump on automobiles and steel and aluminum products. Despite his criticism of London’s China policy, Navarro acknowledged that UK–US trade talks are progressing, with US Vice President Vance recently expressing optimism about a swift agreement.
Meanwhile, the UK and EU are preparing for a summit on May 19, with both sides signaling plans to deepen cooperation on trade and security, including harmonizing food standards and carbon trading. Trump has previously accused the EU of deliberately obstructing US imports.
British officials have repeatedly emphasized that the UK need not choose between the EU and the US, as both are vital partners. Food safety standards remain a sticking point in UK–US trade talks; like the EU, the UK currently bans hormone-treated beef and chlorine-washed chicken. Navarro has warned that if Britain refuses to relax these standards, it will have to bear the costs.
Navarro, a fixture in Trump’s economic team, is known for his hardline views and his belief in tariffs as a primary policy tool. He has advocated for economic decoupling from China and that the world should isolate China. He has held senior roles throughout Trump’s presidency, describing his guiding principle as “wholeheartedly helping President Trump realize his vision,” while always being willing to “take the blame” but never seeking credit.
The Labour government of UK, in contrast, maintains a pragmatic, balanced approach toward China.
Chinese officials have pushed back forcefully. At a public event on May 3, Xie Feng, China’s ambassador to the United States, insisted that economic and trade relations are not a zero-sum game and warned that escalating tariffs would disrupt business, daily life, and global financial stability. “We do not want a tariff war, but we are not afraid of one,” Xie said. “We are determined to defend not only our legitimate rights, but also the international economic and trade order.”
Deep Throat
** 博客文章文責自負,不代表本公司立場 **
The US–China trade war continues, with Nvidia, the American chip giant, bearing the brunt of escalating tensions. According to Reuters, on May 1, Nvidia’s top executives met behind closed doors with the US House Foreign Affairs Committee. During the meeting, Nvidia CEO Jensen Huang voiced concerns about the rapid advancement of Chinese companies’ artificial intelligence (AI) capabilities, particularly the potential for firms like DeepSeek and future open-source Chinese models to run on domestically produced chips. Huang had previously warned that China is not behind the US in AI and is, in fact, “very, very close”, highlighting Huawei’s exceptional progress in computing and networking technologies. He called on the Trump administration to revise current restrictions on AI technology exports.
Huang warned that China is not lagging behind the US in AI, and is “very close.”
The meeting reportedly focused on Chinese AI chips and the possibility that restricting Nvidia’s exports could make Chinese chips more competitive. A congressional source noted that if models like DeepSeek R1 are trained on Chinese chips, or if future Chinese open-source models become highly compatible with domestic chips, this could create global demand for Chinese semiconductors.
A Nvidia spokesperson stated that Huang’s meeting with the committee centered on the strategic importance of AI as national infrastructure and the need to invest in US manufacturing. Nvidia reiterated its full support for government efforts to promote American technology and interests worldwide.
Bloomberg, citing insiders, reported that the US is considering easing restrictions on Nvidia chip exports to the UAE. Trump has questioned why chips can’t be sold to a country already cleared to buy American F-35 fighter jets, and may announce starting negotiations on the subject during his Middle East trip from May 13 to 16.
Nvidia chips have long been a target of US export controls, as they are essential for developing chatbots, image generators, and other AI systems. Since the Biden administration’s 2022 crackdown, restrictions have steadily tightened, banning Nvidia from selling its most advanced products to Chinese customers. In April, the Trump administration halted sales of Nvidia’s “China-specific” H20 chips, a move Nvidia said would cost it $5.5 billion. Washington has since signaled further restrictions, even as demand from China for such chips grows due to low-cost AI models like DeepSeek.
Bloomberg reported that Huang is urging the Trump administration to revise AI export rules. (X)
On April 30, Huang attended the Hill & Valley Forum in Washington, D.C., where he urged the Trump administration to change chip export rules, arguing that “the world has fundamentally changed.” He stressed, “China is not behind – China is right behind us. We’re very, very, very close.”
Huang emphasized that China is quickly becoming a formidable competitor in technology, singling out Huawei for its advances in AI chip design. “Huawei excels in computing and networking – both are essential for advancing AI,” he said. “Just as we make physical cars today, or anything physical in the future, there’ll be a digital version of it. So you need an AI factory to create the AI model that runs in the car.”
He described the AI race as a long-term, infinite race, urging the US government to support domestic companies to compete globally. “This is an industry that we will have to compete for,” Huang declared.
Nvidia has criticized the Biden administration’s so-called “Interim Final Rule on Artificial Intelligence Diffusion” as “highly misleading,” warning that US policy should focus on boosting domestic competitiveness. Restricting chip sales to China and other countries, Nvidia argues, only threatens America’s technological lead.
The Wall Street Journal reported on April 29 that US export controls have failed to curb China’s AI ambitions, instead hampering Nvidia and other American firms while creating opportunities for competitors in China, South Korea, Japan, and Europe.
The report described “AI factories” as one-stop shops selling AI chips, software, design, and network infrastructure. Huang believes these AI factories will become standard for US companies, and that AI-powered data centers under construction will create new jobs in fields like construction and IT.
When Trump met Huang at the White House, he praised Nvidia’s $500 billion AI investment plan.(AP Photo)
On the same day, Huang attended a White House event where Trump, referring to him as “my friend,” praised Nvidia’s $500 billion investment in US AI infrastructure. Huang, in turn, lauded Trump’s efforts to revive American manufacturing, saying it would help Nvidia develop next-generation technologies. “I’m delighted that the administration is really encouraging and supporting the industry with on-shore manufacturing,” Huang said. “If we don’t get good at manufacturing, we’re going to leave behind a giant industry”, he added.
Recently, Huang completed his second trip to China this year. On April 28, Zhao Ping, spokesperson for the China Council for the Promotion of International Trade, said China is committed to serving as a bridge for communication with the US and global business, voicing opposition to tariffs and unilateralism. Zhao called on the US to stop using tariffs as a weapon and to resolve issues through equal-base dialogue, aiming for stable, healthy, and sustainable bilateral economic relations.
Zhao also stressed that decoupling, tariff barriers, and politicizing economic issues are unpopular with the global business community. She highlighted China’s policy transparency, market potential, and comprehensive industrial system. Just like Huang’s remark during his visit: “The China market is very important to us, and it's important to our growth.”
