China has issued a stern warning to countries considering trade deals with the United States, urging them not to do so at its expense. This comes amidst growing tensions in the escalating trade war between the two global giants.
In a statement released on Monday, China’s Ministry of Commerce accused the U.S. of misusing tariffs to pressure other countries into limiting their trade ties with Beijing. The warning follows a Bloomberg report that revealed the Trump administration is allegedly pushing countries seeking tariff exemptions to reduce commerce with China—or face financial penalties.
China’s response was swift and firm. “We will resolutely oppose any agreements made at the expense of China and will take reciprocal actions,” the ministry stated. According to officials, the U.S. is not only targeting China but is also applying unfair tariff pressures on all its trading partners under the guise of ‘equivalence.’
Recent U.S. moves include raising tariffs on Chinese imports to a staggering 145%. In retaliation, China imposed duties of up to 125% on American goods. This tit-for-tat approach has effectively created a blockade, disrupting global trade flows and unsettling markets.
As tensions rise, Southeast Asian countries find themselves caught in the middle. Many of them, including ASEAN members, rely heavily on trade with both powers. Economic experts note that these nations are unlikely to side fully with Washington due to their deep investment and technological ties with China.
China’s strategy to counteract U.S. influence includes strengthening ties with its regional partners. President Xi Jinping recently toured Vietnam, Malaysia, and Cambodia, urging them to oppose what he called “unilateral bullying.” He emphasized that China is expanding its circle of trade allies and “tearing down walls” rather than building them.
Meanwhile, the United States continues its hardline stance by increasing scrutiny on China’s tech advancements. The latest move includes imposing new port fees on vessels built in Chinese shipyards and restricting the export of AI chips, affecting major companies like Nvidia, which reported a $5.5 billion charge due to the new sanctions.
The trade war’s ripple effect is being felt far beyond the U.S. and China. Financial markets are on edge, and ASEAN countries, which traded a combined $710 billion with both giants in 2024 alone, are bracing for impact. Several Southeast Asian ministers are currently in Washington to negotiate trade terms in the face of mounting pressure.
Still, Beijing remains confident. “No one wants to be forced to choose sides,” said Bo Zhengyuan of Plenum, a policy consulting firm in China. “Countries that rely heavily on Chinese infrastructure, investments, and markets will be cautious.”
In the end, the message from China is clear: it will not be sidelined quietly. As global economies navigate this uncertain landscape, the choices made today may define international trade relations for years to come.
