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You are at:Home » China warns against US-led trade deals
Finance and Investing

China warns against US-led trade deals

Gazet InternationalBy Gazet InternationalApril 21, 20254 Mins Read
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Chinese President Xi Jinping
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China accused Washington on Monday of abusing tariffs. It warned countries against striking a broader economic deal with the United States at China’s expense. This escalated the rhetoric in the spiraling trade war between the world’s two biggest economies.

Beijing will firmly oppose any party striking a deal at China’s expense. It “will take countermeasures in a resolute and reciprocal manner,” according to its Commerce Ministry.

The ministry responded to a Bloomberg report. The report stated that the Trump administration is preparing to pressure nations seeking tariff reductions or exemptions from the U.S. to curb trade with China, including imposing monetary sanctions.

President Donald Trump paused the sweeping tariffs he announced on dozens of countries on April 2. He singled out China for the biggest levies, except for those on China.

Washington raised tariffs on Chinese imports to 145% in a series of moves. This prompted Beijing to slap retaliatory duties of 125% on U.S. goods. Last week, China signaled that its own across-the-board rates would not rise further.

The ministry spokesperson said, “The United States has abused tariffs on all trading partners under the banner of so-called ‘equivalence’, while also forcing all parties to start so-called ‘reciprocal tariffs’ negotiations with them.”

China is determined and capable of safeguarding its own rights and interests. The ministry stated that it is willing to strengthen solidarity with all parties.

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

He added, “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 U.S. demands. Many Southeast Asian countries belong to this category.”

Beijing will convene an informal United Nations Security Council meeting this week. It will accuse Washington of bullying and “casting a shadow over the global efforts for peace and development” by weaponizing tariffs. This demonstrates their pursuing a hardline stance.

U.S. Trade Representative Jamieson Greer said earlier this month that nearly 50 countries have approached him. They wished to discuss the steep additional tariffs imposed by President Donald Trump.

Several bilateral talks on tariffs have taken place since. Japan is considering raising soybean and rice imports as part of its talks with the U.S. Indonesia is planning to increase U.S. food and commodities imports and reduce orders from other nations.

Trump’s tariff policies have rattled financial markets. Investors fear a severe disruption in world trade could tip the global economy into recession. The article mentions this as countries are “caught in crossfire.”

Chinese stocks inched higher on Monday. They showed little reaction to the commerce ministry comments. However, investors have generally remained cautious on Chinese assets due to the rising growth risks.

The Trump administration also has been trying to curb Beijing’s progress in developing advanced semiconductor chips. The U.S. says they could be used for military purposes. Last week, they imposed port fees on China-built vessels to limit China’s dominance in shipbuilding.

AI chip giant Nvidia said last week it would take $5.5 billion in charges. This is due to the administration’s curbs on AI chip exports.

China’s President Xi Jinping visited three Southeast Asian countries last week. This was a move to bolster regional ties. He called on trade partners to oppose unilateral bullying.

Beijing has said it is “tearing down walls.” They are expanding its circle of trading partners amid the trade row.

The stakes are high for Southeast Asian nations caught in the crossfire of the Sino-U.S. tariff war. This is particularly given the regional ASEAN bloc’s huge two-way trade with both China and the United States.

ASEAN is China’s largest trading partner. The total trade value reached $234 billion in the first quarter of 2025. China’s customs agency said last week that this accounts for over 16% of China’s overall foreign trade.

Trade between ASEAN and the U.S. totaled around $476.8 billion in 2024, according to U.S. figures. This makes Washington the regional bloc’s fourth-largest trading partner.

Xi said in an article published in Vietnamese media, “There are no winners in trade wars and tariff wars,”. He did not mention the United States.

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