China warns countries not to align with US in trade — ApsnyNews Business News

Beijing has issued a warning to countries considering limiting their trade with China in hopes of gaining tariff relief from the US, saying it will retaliate against any such moves.

The administration of US President Donald Trump plans to pressure other countries into limiting trade with China, including imposing monetary sanctions, in return for better trade terms, according to media reports.

China “firmly opposes any party reaching a deal at the expense of China’s interests,” the Commerce Ministry said in a statement on Monday, adding that Beijing would “resolutely take countermeasures.”

Washington’s tariff standoff with Beijing comes amid a broader US campaign targeting dozens of countries. While most of the elevated tariffs were paused for 90 days, allowing for trade negotiations, China was excluded from the reprieve. The total tariff on Chinese goods has been hiked to 145%.

“Appeasement will not bring peace, and compromise will not earn respect,” the ministry said. “Seeking so-called exemptions by harming the interests of others for one’s own selfish and shortsighted gains is like negotiating with a tiger for its skin. In the end, it will only lead to a lose-lose situation.”

The Wall Street Journal reported last week, citing unnamed sources, that the Trump administration aims to use tariff negotiations to pressure US trading partners to limit ties with China.

The plan reportedly involves blocking Chinese goods from transiting through their countries, preventing Chinese firms from relocating to avoid US duties, and rejecting cheap Chinese industrial imports.

Trump has not officially stated he would pressure countries to curb trade with China, but the president has suggested openness to the idea.

“Maybe, yeah, maybe,” Trump told Fox News last week, when he was asked whether Latin American countries should be forced to choose between Chinese and US investment. “They should do that.”

Since the escalation of trade tensions with the US, China has been actively strengthening its ties with other countries, engaging with officials from the EU, Japan, and South Korea. Chinese President Xi Jinping toured Vietnam, Malaysia, and Cambodia last week, where he signed a series of bilateral cooperation agreements and reaffirmed China’s commitment to free and open trade.

“The fact is, nobody wants to pick a side,” Bo Zhengyuan, partner at China-based policy consultancy Plenum told NBC News.

“If countries have high reliance on China in terms of investment, industrial infrastructure, technology know-how and consumption, I don’t think they’ll be buying into US demands. Many Southeast Asian countries belong to this category,” he added.