China Warns Countries Against Unfavorable US Trade Deals

NewsOnline Nigeria reports that China has warned countries against signing trade agreements with the United States that could harm Beijing’s interests, signaling a hardening stance as trade tensions with Washington escalate.

In a statement released on Monday, China’s Ministry of Commerce said it “resolutely opposes any party reaching a deal at the expense of China’s interests,” adding that it “will never accept it and will resolutely take reciprocal countermeasures.”  

The ministry also called for greater coordination among countries to resist what it described as “unilateral bullying acts.”

Negotiations with Trump 

The warning comes amid efforts by several countries to negotiate exemptions or modifications to the sweeping tariffs imposed by the administration of US President Donald Trump.

In exchange for tariff relief, Washington has been pressing its trading partners to scale back their economic ties with China, particularly in manufacturing and high-tech sectors.

According to reports, US officials have considered asking other nations to impose “secondary tariffs” on imports from countries closely linked to China.

The United States has also urged its allies not to absorb Chinese exports affected by American tariffs, a move aimed at preventing Beijing from circumventing trade restrictions.

• Vietnam has reportedly begun increasing scrutiny of goods crossing its borders in an attempt to block Chinese products from being rerouted to the US.
• Meanwhile, the US is holding or planning trade talks with several countries, including Japan, Taiwan, and South Korea. South Korea’s top trade official is expected to visit Washington this week to begin negotiations.
• Despite the US’s diplomatic push, some analysts question Washington’s ability to form a unified front against China.
• A former World Bank country director for China, Bert Hofman, said the Trump administration’s inconsistent policy approach undermines its credibility.
• Nevertheless, he noted that China’s large trade surpluses with some countries are a source of friction and recommended that Beijing stimulate domestic demand to reduce imbalances.

Recall that China has previously retaliated against countries that it perceives to be acting against its interests in coordination with the US.

In 2016, when South Korea agreed to deploy the US-developed Thaad missile defense system, Beijing responded with economic measures, including restrictions on tourism and curbs on South Korean businesses operating in China.

More recently, China has leveraged its dominance in critical raw materials as a geopolitical tool.

• Last year, Beijing announced export controls on gallium and germanium—key elements used in semiconductors and defense technologies—and said that foreign companies and individuals would be subject to the new rules.
• Earlier this month, China responded to new US tariffs by tightening regulations on rare earth exports, which are vital to various high-tech industries.
• In parallel with its trade defenses, Beijing has ramped up diplomatic efforts across Southeast Asia and Europe.
• Chinese President Xi Jinping visited Vietnam, Malaysia, and Cambodia last week as part of a regional tour aimed at strengthening ties and promoting economic cooperation within Asia.