APRIL 21 – China has warned it will hit back at countries that make deals with the US that hurt Beijing’s interests, as the trade war between the world’s two biggest economies threatens to drag in other nations.
The comments come after reports that the US plans to pressure governments to restrict trade with China in exchange for exemptions to US tariffs.
The Trump administration has started talks with trading partners over tariffs, with a Japanese delegation visiting Washington last week and South Korea is set to start negotiations this week.
Since returning to the White House in January, Trump has imposed hefty taxes on Chinese imports, while other countries have also been hit with levies on their goods.
“Appeasement cannot bring peace, and compromise cannot earn one respect,” a Chinese Commerce Ministry spokesperson said.
“China firmly opposes any party reaching a deal at the expense of China’s interests. If this happens, China will never accept it and will resolutely take countermeasures”.
The remarks echoed an editorial last week in the state-controlled China Daily, which warned the European Union against trying to “appease” the US.
The comments came after reports that the US plans to use tariff negotiations to pressure dozens of countries into imposing new barriers on trade with China.
The BBC has asked the US Treasury Department and the US Trade Representative for responses to the reports.
Trump has said more than 70 countries have reached out to start negotiations since the tariffs were announced.
“If you put the numbers on it, about 20% of Japan’s profitability comes from the United States, about 15% comes from the People’s Republic of China,” said Jesper Koll, from Japanese online trading platform operator Monex Group.
“Certainly, Japan doesn’t want to [have to] choose between America and the People’s Republic of China.”
Japan kicked off negotiations with the US last week when its top tariff negotiator, Ryosei Akazawa, met the US President in Washington DC.
South Korea’s acting president, Han Duck-soo, has said his country will begin trade talks with the US later this week.
Meanwhile, US Vice President, JD Vance, is expected to meet India’s Prime Minister Narendra Modi during a visit to the country this week. India faces a tariff rate of 26% if it is unable to agree a trade deal with the Trump administration.
Last week, Vance said there was a “good chance” a trade deal could be reached with the UK.
“We’re certainly working very hard with Keir Starmer’s government,” he said in an interview with the UnHerd website.
Since Trump’s inauguration, there has been a flurry of announcements on tariffs.
The US president has said the import taxes will encourage US consumers to buy more American-made goods, increase the amount of tax raised, and lead to major investments in the country.
But critics have said bringing manufacturing back to the US is complicated and could take decades and that the economy will struggle in the meantime.
Trump has also backtracked on many of his announcements.
Just hours after steep levies on dozens of America’s trading partners kicked in earlier this month, he announced a 90-day pause on those tariffs to all countries bar China, in the face of mounting opposition from politicians and the markets.
Trump has imposed taxes of up to 145% on imports from China. Other countries are now facing a blanket US tariff of 10% until July.
His administration said last week that when the new tariffs are added on to existing ones, the levies on some Chinese goods could reach 245%.
China has hit back with a 125% tax on products from the US and vowed to “fight to the end”.
The trade war between the world’s two biggest economies sent shockwaves through the global financial markets earlier this month.
