Tensions between China and the United States took another sharp turn this week, as Beijing warned it will retaliate against countries that align with Washington on trade policies seen as targeting Chinese interests.
The statement marks a deepening of the ongoing trade standoff between the world’s two largest economies and signals broader geopolitical ripple effects.
The warning, delivered through China’s Ministry of Commerce, comes after the U.S. announced new tariffs of up to 145 percent on select Chinese imports, citing unfair trade practices and security concerns. In a swift and firm response, Beijing imposed its own set of countermeasures—125 percent tariffs on a range of American products.
But this time, China’s message went beyond Washington. The ministry urged other nations to think twice before joining what it described as “unilateral and coercive” trade strategies led by the U.S., warning that any move to isolate China economically would be met with strong countermeasures.
“China will not remain passive while its core interests are undermined,” a spokesperson said. “We advise all countries to consider long-term global stability before engaging in alliances that disrupt fair trade.”
This comes at a time when several Asian and Western countries, including Japan, South Korea, and Taiwan, are reportedly exploring tighter trade cooperation with the U.S.
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part of a broader push to diversify supply chains and reduce dependence on Chinese manufacturing. These developments have clearly rattled Beijing, which fears an economic bloc forming against it.
In what many see as a strategic move, China also announced the appointment of Li Chenggang as its new chief trade negotiator. Known for his deep understanding of international law and experience navigating World Trade Organization affairs, Li replaces Wang Shouwen at a time when Beijing is recalibrating its trade diplomacy.
Analysts believe his appointment reflects a shift in tone: Beijing is likely to continue responding firmly, but with a calculated and diplomatic approach.
The stakes are high for countries that maintain strong trade ties with both powers. Southeast Asia, for instance, has seen booming commerce with both China and the U.S. Trade between ASEAN countries and China totaled over $230 billion in the first quarter of this year alone, while exports to the U.S. remain vital for many of the region’s economies.