China warns countries against U.S. trade deals that undermine Beijing’s interests

[WORLD] China has issued a sharp warning to foreign governments contemplating trade agreements with the United States that may come at Beijing’s expense, asserting that it will not hesitate to take retaliatory measures to safeguard its economic interests. The warning underscores growing tensions between the world’s two largest economies as both nations deepen their economic strategies and trade postures ahead of key political and economic milestones.

Rising Tensions Over Global Trade Alignments

In a statement released by the Ministry of Commerce on April 20, China accused the United States of leveraging tariff exemptions and preferential trade terms to pressure allies and partners into curtailing economic ties with Beijing. The move, according to Chinese officials, is part of a broader U.S. strategy to isolate China economically.

“We urge relevant countries to remain vigilant about the intentions behind U.S. trade overtures,” said Ministry spokesperson He Yadong. “Any agreement that damages China’s legitimate development rights and economic sovereignty will be met with firm countermeasures.”

The comments follow reports that Washington is actively pursuing trade deals in Asia and Latin America that aim to restructure supply chains and reduce dependency on Chinese goods and materials, particularly in strategic sectors such as semiconductors, rare earths, and green energy.

U.S. Tariffs and China’s Retaliation

Tensions escalated earlier this month when the U.S. announced a sweeping new tariff policy targeting a range of Chinese imports, with some categories facing duties as high as 145%. The Biden administration said the move was necessary to counter unfair trade practices and protect U.S. manufacturing.

China responded in kind, slapping tariffs of up to 125% on certain U.S. goods and warning of further economic retaliation if what it calls “economic coercion” persists.

This tit-for-tat exchange has revived fears of a renewed trade war similar to that of 2018–2020, which disrupted global markets and strained multilateral trade frameworks.

Broader Geopolitical Context

The warning comes at a time of shifting geopolitical alliances. The United States has intensified outreach to nations in Southeast Asia, Europe, and Latin America, encouraging them to diversify their trade dependencies. Initiatives such as the Indo-Pacific Economic Framework (IPEF) and a potential digital trade agreement among APEC nations are viewed by Beijing as thinly veiled attempts to contain its rise.

Meanwhile, Beijing has been expanding its influence through trade and investment under the Belt and Road Initiative, which now includes over 140 partner countries. China's latest warning may also be aimed at dissuading those same partners from pivoting toward Washington in exchange for economic incentives or tariff relief.

Global Implications for Trade and Investment

Economists warn that escalating trade frictions between the U.S. and China could have broad repercussions for global supply chains and economic growth. According to the International Monetary Fund (IMF), decoupling between major economies could reduce global GDP by up to 7% over the long term.

"Trade fragmentation increases costs, creates inefficiencies, and stifles innovation," said Gita Gopinath, First Deputy Managing Director of the IMF, in a recent speech. “Policymakers should prioritize multilateral cooperation over unilateral action.”

Industry groups in both the U.S. and China have also expressed concern over the deteriorating trade climate. The U.S. Chamber of Commerce recently urged both governments to “engage in dialogue rather than punitive measures,” warning that small- and medium-sized businesses are particularly vulnerable to sudden policy shifts.

Multiple Viewpoints: Strategic Competition or Necessary Realignment?

While Beijing frames its warning as a defense of sovereign rights and fair competition, U.S. officials maintain that current trade efforts are aimed at rebalancing an unfair global system.

U.S. Trade Representative Katherine Tai defended the administration’s policies, saying they are designed “to build resilience and fairness into our trade architecture” and to reduce overreliance on any single country, especially in critical industries.

European and Asian nations find themselves in a delicate position, striving to balance economic ties with both superpowers. Japan, for instance, has expressed support for U.S.-led initiatives to secure critical supply chains but continues to engage China as a key trading partner.

Outlook: A Fractured Trade Future?

Analysts suggest that unless diplomatic channels are revived, the global trade environment may become increasingly fragmented. A shift toward regional blocs and economic nationalism could undermine institutions such as the World Trade Organization (WTO), already weakened by years of gridlock.

As the 2025 APEC summit approaches, both Washington and Beijing are expected to intensify lobbying efforts to shape the future of international trade rules. Whether the world moves toward deeper cooperation or further division may depend on how other nations respond to China’s latest warning—and how the U.S. continues to frame its economic diplomacy.