China Issues Warning Against Trade Agreements Favoring the U.S.

In a significant escalation of rhetoric amid an ongoing trade conflict, China has cautioned nations against entering into economic agreements with the United States that would be detrimental to its interests. The Chinese Ministry of Commerce has accused the U.S. of misusing tariffs and has pledged to respond firmly against any such deals.

The ministry's statements came in response to reports suggesting that the U.S. government, under the Trump administration, is planning to leverage pressure on countries seeking tariff reductions or exemptions to limit their trade with China. This includes potential monetary sanctions against those who do not comply.

President Trump has already implemented extensive tariffs on a range of countries, maintaining a focus on China, which has faced tariffs as high as 145%. In retaliation, China has imposed its own tariffs of 125% on U.S. products. Despite these tensions, the Chinese government indicated last week that it would not escalate its tariff rates further.

A spokesperson for the Ministry of Commerce criticized the U.S. approach, stating that Washington has unfairly applied tariffs to all trading partners while compelling them to engage in negotiations based on the notion of reciprocity. The ministry emphasized China's determination to protect its rights and interests while also fostering collaboration with other nations.

According to Bo Zhengyuan, a partner at a policy consultancy in China, many countries reliant on China for investment, technology, and consumption are unlikely to yield to U.S. pressures. This sentiment is particularly prevalent among Southeast Asian nations.

In a show of defiance, China plans to convene an informal meeting of the United Nations Security Council to accuse the U.S. of coercive tactics that undermine global peace and development efforts through the weaponization of tariffs.

Earlier this month, U.S. Trade Representative Jamieson Greer revealed that nearly 50 countries had reached out regarding the steep tariffs imposed by the Trump administration. This has sparked various bilateral discussions, with countries like Japan considering adjustments in agricultural imports and Indonesia aiming to enhance its imports of U.S. goods.

The trade tensions have caused volatility in financial markets, as concerns grow that disruptions in global trade could push the economy toward recession. While Chinese stock markets showed minor gains following the ministry's comments, investor sentiment remains cautious amid rising economic uncertainty.

Additionally, the Trump administration has sought to hinder China's advancements in semiconductor technology, asserting that such developments could have military applications. Recent measures included imposing fees on vessels built in China to restrict its shipbuilding dominance.

China's President Xi Jinping has recently visited several Southeast Asian countries, advocating for regional solidarity against unilateral pressure from the U.S. In his communications, he emphasized the need to strengthen trade partnerships amid ongoing tensions.

The stakes are particularly high for Southeast Asian nations, which find themselves caught in the crossfire of the Sino-U.S. trade dispute. The ASEAN bloc maintains substantial trade relations with both China and the U.S., with recent figures indicating total trade with China reaching $234 billion in early 2025, accounting for over 16% of China's overall foreign trade. Conversely, trade between ASEAN and the U.S. was approximately $476.8 billion in 2024, making the U.S. the fourth-largest trading partner for the bloc.

In light of these developments, experts warn that trade wars do not yield winners, a sentiment echoed by President Xi in a recent article highlighting the detrimental effects of tariff conflicts.