United States-China trade war: Beijing warns of retaliation if nations side with Trump at Republic’s expense

Evelyn Cheng
CNBC
China has warned other countries it will retaliate if deals with the US are done at China’s expense.
China has warned other countries it will retaliate if deals with the US are done at China’s expense. Credit: Supplied/The Nightly

China on Monday warned it will retaliate against countries that cooperate with the US in ways that compromise Beijing’s interests, as the trade war between the world’s two largest economies threatens to embroil other nations.

China’s warning comes as US President Donald Trump’s administration is reportedly planning to use tariff negotiations to pressure US partners to limit their dealings with China.

Mr Trump this month paused major tariff increases on other countries for 90 days, while hiking duties further on goods from China to 145 per cent.

Sign up to The Nightly's newsletters.

Get the first look at the digital newspaper, curated daily stories and breaking headlines delivered to your inbox.

Email Us
By continuing you agree to our Terms and Privacy Policy.

“China firmly opposes any party reaching a deal at the expense of China’s interests. If this happens, China will not accept it and will resolutely take reciprocal countermeasures,” the Chinese Ministry of Commerce said, according to a CNBC translation.

The ministry cautioned about the risk to all countries once international trade returns to the “law of the jungle.”

The statement also sought to cast China as willing to work with all parties and “defend international fairness and justice,” while describing the US actions as “abusing tariffs” and “unilateral bullying.”

In a shift toward a harder stance this month, China retaliated against US tariffs with levies of 125 per cent on imports of American goods. Beijing has also restricted critical minerals exports and put several, mostly smaller, US companies on blacklists that restrict their ability to work with Chinese companies.

Analysts don’t expect the US and China to reach a deal anytime soon, although Mr Trump on Thursday said he expected an agreement could be reached in the next three to four weeks.

Chinese President Xi Jinping last week visited Vietnam, Malaysia and Cambodia in his first overseas trip of 2025. In official Chinese readouts of his meetings with the three countries’ leaders, Mr Xi called for joint efforts to oppose tariffs and “unilateral bullying.”

Since Mr Trump imposed tariffs on China during his first term, the Asian country has increased its trade with Southeast Asia, now China’s largest trading partner on a regional basis. The US remains China’s largest trading partner on a single-country basis.

Last week, China’s Ministry of Commerce replaced its top international trade negotiator with Li Chenggang, who also became a vice minister and has been the country’s ambassador to the World Trade Organisation.

China has filed a lawsuit against the US with the WTO over Mr Trump’s latest tariff increases.

Comments

Latest Edition

The Nightly cover for 17-04-2025

Latest Edition

Edition Edition 17 April 202517 April 2025

Albanese and Dutton at the campaign crossroads as election battle hits the Easter break. Who will make it count?