China warns countries against trade agreements with the United States that may harm its interests

On Monday, China accused the United States of misusing tariffs and cautioned other nations against entering into broader economic agreements that would disadvantage China, intensifying its rhetoric amid an escalating trade conflict between the two largest economies in the world. The Commerce Ministry of Beijing stated that it would staunchly oppose any agreements made at China’s expense and would respond with decisive and reciprocal measures.

This statement came in reaction to a Bloomberg report, which referenced sources familiar with the situation, indicating that the Trump administration is preparing to exert pressure on countries seeking tariff reductions or exemptions from the U.S. to limit their trade with China, potentially including financial sanctions. President Donald Trump had previously suspended extensive tariffs he announced on numerous countries on April 2, with the exception of those targeting China, which has been singled out for the most significant levies.

In a series of actions, the U.S. has increased tariffs on Chinese imports to 145%, leading China to impose retaliatory tariffs of 125% on American goods, effectively creating trade barriers between the two nations. Recently, China indicated that it would not further increase its overall tariff rates.

A spokesperson for the ministry remarked, “The United States has exploited tariffs against all trading partners under the guise of ‘equivalence’, while simultaneously compelling all parties to engage in so-called ‘reciprocal tariffs’ negotiations.” The ministry emphasized China’s determination and capability to protect its rights and interests, expressing a willingness to enhance cooperation with all parties involved.

Bo Zhengyuan, a partner at the China-based policy consultancy Plenum, noted, “In reality, no one wants to take sides. Countries that heavily depend on China for investment, industrial infrastructure, technological expertise, and consumption are unlikely to acquiesce to U.S. demands. Many Southeast Asian nations fall into this category.”

Taking a firm approach, Beijing is set to hold an informal United Nations Security Council meeting this week to accuse Washington of intimidation and “casting a shadow over global peace and development efforts” by weaponizing tariffs.

Earlier this month, U.S. Trade Representative Jamieson Greer reported that nearly 50 countries have reached out to him regarding the significant additional tariffs imposed by Trump. Since then, several bilateral discussions on tariffs have occurred, with Japan contemplating an increase in soybean and rice imports during its negotiations with the U.S., while Indonesia plans to boost imports of U.S. food and commodities while reducing orders from other countries.

Caught in the crossfire

Trump’s tariff policies have unsettled financial markets, as investors worry that a major disruption in global trade could lead to a recession. On Monday, Chinese stocks saw a slight increase, showing minimal response to comments from the commerce ministry, although investors remain generally cautious about Chinese assets due to escalating growth risks.

The Trump administration has also been working to limit Beijing’s advancements in the development of sophisticated semiconductor chips, which it claims could have military applications. Last week, it introduced port fees on vessels built in China to curtail the country’s shipbuilding dominance.

Nvidia, a leading AI chip manufacturer, announced last week that it would incur $5.5 billion in charges due to the administration’s restrictions on AI chip exports. Meanwhile, China’s President Xi Jinping visited three Southeast Asian nations last week to strengthen regional relationships, urging trade partners to resist unilateral bullying.

Beijing has stated that it is “tearing down walls” and broadening its network of trading partners amid the ongoing trade dispute. The stakes are particularly high for Southeast Asian countries caught in the middle of the Sino-U.S. tariff conflict, especially considering the significant two-way trade within the ASEAN bloc with both China and the United States.

Economic ministers from Thailand and Indonesia are currently visiting the United States, with Malaysia expected to join them later this week to engage in trade discussions. Six Southeast Asian nations have faced tariffs ranging from 32% to 49%, posing a threat to their trade-dependent economies, which have previously benefited from investments affected by tariffs imposed on China during Trump’s first term.

According to China’s customs agency, ASEAN is China’s largest trading partner, with total trade reaching $234 billion in the first quarter of 2025. Additionally, trade between ASEAN and the United States amounted to approximately $476.8 billion in 2024, making the U.S. the fourth-largest trading partner for the regional bloc.

In an article published in Vietnamese media, Xi remarked, “There are no winners in trade wars and tariff wars,” without specifically referencing the United States.