China to world: Don’t trade with the US on Trump’s terms or face retaliation

China has been issuing stronger warnings to countries considering trade deals with the United States under the Trump administration. These warnings include threats of retaliatory actions against any agreements China believes undermine its interests. This is a big new development in the ongoing trade war.

There has been a lot of back-and-forth exchange of tariffs between the two major economies and a concerted effort by the U.S. to pressure its allies to lessen their trade relationships with China. As reported by Investing, China’s main concern revolves around the U.S. strategy of providing tariff reductions to its trading partners in return for trade concessions against China.

Reports indicate that Washington has urged many countries to limit their economic ties with Beijing, especially in manufacturing and high technology sectors. China sees this as coercive behavior that violates global norms. The U.S. has also tried to prevent China from bypassing its tariffs by sending exports through other countries, leading places like Vietnam to increase border checks to stop such practices.

China is warning other countries not to support US in trade war

Of course, the U.S. has considered implementing “secondary tariffs” on imports from nations seen as closely linked to China, per NairaMetrics. In response, China has taken various approaches. The Ministry of Commerce has clearly opposed trade agreements that disadvantage Chinese interests and has promised strong countermeasures.

This response is more than just talk; China has a history of retaliating against perceived cooperation with the U.S. For example, when South Korea deployed the US-developed THAAD missile defense system in 2016, it faced significant economic consequences from China, including restrictions on tourism and limits on South Korean businesses operating in China.

More recently, China has shown its readiness to use its control over critical raw materials as a tool for geopolitical power. Last year, it imposed restrictions on gallium and germanium exports, which are vital for semiconductor and defense technologies, affecting international companies and individuals. Following new U.S. tariffs, further limits on rare earth exports (important for many high-tech industries) were also introduced.

At the same time, China has increased diplomatic efforts to build better relationships in Southeast Asia and Europe. Like President Xi Jinping’s recent tours in the region, high-profile visits highlight China’s strategy to establish alternate trade partnerships and counter U.S. influence. Whether the U.S. can effectively create a united front against China is still debated. While some countries, including Japan and South Korea, have engaged in discussions with Washington to seek tariff relief, there are lingering concerns about the reliability and effectiveness of U.S. policy.

It is not certain whether the U.S. can maintain a cohesive strategy because that inconsistent policy could damage credibility and hinder efforts to present a united front against China.