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China warns against US trade alliances

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  • China has warned nations against forming trade deals with the U.S. that could harm Chinese interests, vowing to respond with countermeasures.
  • The U.S. has raised tariffs on Chinese goods and is pressuring allies to limit trade with China, escalating tensions in the ongoing trade war.
  • Beijing is expanding diplomatic and economic outreach, including Belt and Road investments and tech innovation, to counter U.S. efforts to isolate it.

[WORLD] China on Monday issued a strong warning to nations contemplating broad economic agreements with the United States that could undermine Chinese interests, intensifying its rhetoric amid an escalating trade standoff between the world’s two largest economies.

The Commerce Ministry stated that Beijing would "resolutely and reciprocally" counter any attempts by other countries to reach trade deals that come at China’s expense.

The statement came in response to a Bloomberg report citing sources familiar with the issue, which said the Trump administration is planning to push countries seeking tariff relief from the U.S. to limit their trade activities with China. The report also mentioned the possibility of financial penalties as part of the strategy.

President Donald Trump previously announced a wide-ranging tariff plan on April 2, targeting multiple countries but exempting all except China, which was hit with the harshest measures.

The U.S. has since hiked tariffs on Chinese goods to as much as 145%, prompting a retaliatory move from Beijing, which imposed duties of up to 125% on American imports. While China has said it does not intend to raise these rates further for now, tensions remain high.

According to the Commerce Ministry, Washington has misused the concept of "equivalence" to justify tariffs on various trading partners, and is pressuring countries into so-called "reciprocal" negotiations that ultimately serve U.S. interests.

China reaffirmed its readiness to protect its own economic rights and expressed its willingness to unite with other nations to uphold multilateral trade principles.

“Most countries are reluctant to take sides,” said Bo Zhengyuan, a partner at Plenum, a China-based policy advisory firm.

“For those heavily dependent on China for investment, manufacturing capabilities, technological cooperation, and consumer markets, there is little incentive to yield to U.S. demands. Many Southeast Asian nations fall into this category.”

Amid the escalating dispute, many countries have been forced to reconsider their trade strategies, striving to maintain a balance between Washington and Beijing. While some governments have yielded to American pressure, others have sought to deepen ties with China in a bid to shield their economies from the fallout. Southeast Asian nations, including Vietnam, Thailand, and Malaysia, are particularly cautious, weighing the benefits of continued Chinese investment against the potential consequences of distancing themselves from the U.S.

In a further show of defiance, China plans to hold an informal meeting at the United Nations Security Council this week, during which it will accuse the U.S. of economic coercion and undermining international cooperation through the use of tariffs as a political tool.

Meanwhile, U.S. Trade Representative Jamieson Greer revealed that nearly 50 countries have contacted him in recent weeks to discuss the tariffs introduced by President Trump.

Bilateral negotiations have since gained momentum. Japan is reportedly exploring the possibility of increasing imports of U.S. agricultural products, such as soybeans and rice, while Indonesia is considering boosting purchases of American commodities and scaling back on imports from other countries.

In response to these shifts, China has stepped up its diplomatic and economic engagements. Central to this push is the Belt and Road Initiative (BRI), which seeks to expand trade infrastructure and connectivity across continents. Through sustained investment in sectors like transport, energy, and digital communications, China is positioning itself as a vital global trade partner and counterweight to U.S.-driven policies.

Washington, for its part, has moved to stifle Beijing’s progress in strategic industries, particularly semiconductors. The administration recently imposed new port fees on ships built in Chinese yards, in a bid to slow China's momentum in shipbuilding and related sectors.

Technology firm Nvidia announced last week that it expects to incur $5.5 billion in charges due to U.S. restrictions on AI chip exports to China, underscoring the costs associated with the growing tech conflict.

As competition intensifies, both countries are heavily investing in emerging technologies like artificial intelligence, 5G, and quantum computing. While the U.S. continues efforts to limit China’s access to high-tech components, Beijing has made considerable advances in building its own capabilities. Backed by substantial research funding and a large domestic market, China’s push for self-reliance is reshaping the global tech landscape and fueling Washington’s concerns over long-term strategic rivalry.

Seeking to reinforce regional partnerships, Chinese President Xi Jinping recently embarked on a diplomatic tour through three Southeast Asian nations, where he urged leaders to reject unilateralism and economic coercion.

“In trade wars and tariff disputes, there are no true winners,” Xi wrote in an article published in Vietnamese media, without directly referencing the United States.


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