China issued a warning to countries about forming agreements with the United States that could undermine China’s interests, escalating tensions in the ongoing trade conflict between Beijing and Washington. This warning highlights the potential risks that other nations may face as the trade war continues.
The Ministry of Commerce in China released a statement on Monday, affirming respect for nations settling trade disputes with the U.S. However, it firmly opposes any agreements that would be detrimental to China’s interests. The Ministry stated that if such a situation arises, China will refuse to accept it and will implement reciprocal countermeasures. China expressed its willingness to collaborate with all parties to resist unilateral acts of intimidation.
This development occurs as various countries prepare for discussions with the U.S. regarding potential reductions or exemptions from the extensive tariffs imposed by President Donald Trump on approximately 60 trading partners, although these tariffs were later paused. The U.S. is advocating for its partners to restrict trade with China and limit Beijing’s manufacturing capabilities to prevent evasion of the tariffs.
According to Bloomberg News, Trump’s top economic advisers have considered requesting representatives from other nations to implement secondary tariffs, essentially financial sanctions, on imports from countries maintaining close ties with China. Additionally, Washington seeks to dissuade its trading partners from absorbing surplus goods from China.
Vietnam, as reported by Reuters, is preparing to limit Chinese shipments passing through its borders on their way to the U.S.
China has previously targeted countries whose cooperation with the U.S. was perceived as harmful. In 2016, the U.S. and South Korea’s agreement to deploy the Thaad missile defense system, which Washington claimed was designed to counter North Korean threats, prompted complaints from China. Beijing argued that this system could destabilize the region’s strategic balance and facilitate spying on Chinese missile systems.
In response, China suspended sales of package tours to South Korea and imposed restrictions on Korean businesses. Eventually, Beijing and Seoul agreed to move past the dispute, although the Thaad batteries remain in South Korea.
Last year, China announced a ban on the sale of dual-use items to the American military and restricted the export of materials such as gallium and germanium to the U.S., affecting overseas companies and individuals.
As the world’s leading supplier of numerous crucial rare earth minerals essential to the communications and defense sectors, China’s dominance in this area has raised concerns in Washington. This was particularly evident when Beijing initiated controls on gallium and germanium exports.
In retaliation against recent tariffs by the Trump administration, China not only declared its own levies but also announced export controls on rare earths. As a result, shipments of these materials were nearly halted as producers dealt with stricter permitting requirements.
China has intensified its diplomatic efforts in response to the U.S.’s actions, engaging with Southeast Asia and Europe. President Xi Jinping visited Vietnam, Malaysia, and Cambodia to foster an “Asian family” that can better tackle the challenges posed by Trump’s tariffs.
