Trade war, escalation: China warns other states against taking sides with the US
22 April 14:20
Neither China nor the United States is going to give in in the trade war. Another moment of escalation was the stern warning from the Ministry of Commerce of China to the countries negotiating trade agreements with the United States , "Komersant Ukrainian" reports with reference to Bloomberg.
Thus, Beijing said that it “strongly opposes any agreements reached at the expense of China’s interests,” threatening “decisive mutual countermeasures” against violators.
US demands anti-Chinese measures from partners
The warning comes as many countries are preparing to negotiate with the United States to reduce or eliminate the massive tariffs recently imposed by US President Donald Trump on about 60 trading partners. In exchange for easing tariff policy, Washington is pressuring them to restrict trade with China and curb its manufacturing capacity.
According to Bloomberg, Trump’s economic advisers are discussing the possibility of asking other countries to impose so-called secondary tariffs – essentially monetary sanctions – on imports from certain countries that have close ties to China. Washington also wants trading partners to refrain from absorbing excess goods from China.
Negotiations are already intensifying. In particular, a number of moves have begun in Asia that are not entirely pleasant for China:
- Vietnam is preparing to tighten control over Chinese goods crossing its borders on the way to the United States;
- The United States and Japan have begun trade negotiations;
- Taiwan characterized discussions on export controls as “intense”;
- south Korea’s top trade official will visit Washington this week to begin talks.
In response to the US, China not only imposed its own duties, but also tightened controls on exports of rare earth metals. Exports of these materials have virtually stopped as producers have faced stricter permit requirements.
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China’s countermeasures
China has a history of targeted actions against countries whose cooperation with the United States, in Beijing’s view, harms its interests. An illustrative example is the reaction to the deployment of the THAAD missile defense system in South Korea in 2016, when China suspended the sale of tourist vouchers to that country and impeded the activities of South Korean companies.
Last year, China banned the sale of dual-use goods to the U.S. military and the export of materials such as gallium and germanium to the United States, extending these restrictions to companies and individuals abroad.
In an effort to counter the recent US moves, Chinese President Xi Jinping visited Vietnam, Malaysia, and Cambodia last week to rally the “Asian family” that could better cope with the risks posed by Trump’s tariffs.
However, Bert Hoffman, former World Bank country director, believes that Beijing should not worry too much about forming an anti-China coalition, as
“The United States is unlikely to be able to create such a coalition because of its unpredictable policy style.”
In his opinion, the best way for China to resolve this tension is to stimulate domestic demand to reduce its surplus and coordinate with other countries to avoid cascading tariffs in response to Trump’s trade war.
Trade war between the US and China
The trade confrontation between the world’s two largest economies escalated sharply in early 2025 after Trump’s re-election. on February 1, Washington imposed a 10% tariff on all Chinese imports, accusing Beijing of “unfair trade” and manipulating the yuan exchange rate. on March 4, tariffs were raised by another 10%, bringing the total level of duties to 20%.
In response, China announced the introduction of 15% duties on American agricultural products and 10% duties on other goods. This was followed by a series of announcements of new tariffs from both sides.
As a result, as of April 22, 2025, the United States increased duties on Chinese imports to 145%, leaving temporary exemptions for certain technology goods at a rate of 20%. In response, China has introduced mirror measures, imposing duties on US goods up to 125% and restricting exports of critical rare earth metals. The trade confrontation between the two countries is escalating, with no signs of de-escalation.
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