Monday, April 21, 2025 -Beijing has issued a stern warning to its trading partners, urging them not to cave under pressure from the United States to isolate China amid President Donald Trump’s aggressive tariff campaign. The message is part of China’s dual strategy of outreach and retaliation aimed at countries caught in the crossfire of the escalating economic conflict between the world’s two largest economies.
Responding to reports that the Trump administration is
offering tariff exemptions in exchange for curbing trade with China, a
spokesperson for China’s Commerce Ministry said Monday
“Appeasement
does not bring peace, and compromise does not earn respect. Seeking temporary
self-interest at the expense of others — in exchange for so-called exemptions —
is like asking a tiger for its skin. In the end, it will achieve nothing and
harm both others and oneself.”
The spokesperson emphasised that China “firmly opposes any
party reaching a deal at the expense of China’s interests,” warning that
Beijing would “resolutely take reciprocal countermeasures” if such scenarios
materialise.
This warning follows Chinese President Xi Jinping’s recent
tour of Southeast Asia, where he portrayed China as a stable and committed
advocate of global trade. His visits to Vietnam, Malaysia, and Cambodia were
part of an effort to strengthen bilateral ties, sign cooperation deals, and
distinguish China from the volatile policies of the Trump administration.
As global markets reel from rising tariffs and disrupted
supply chains, many nations are struggling to balance relationships with both
economic giants. Trump recently paused his sweeping “reciprocal” tariffs on
most countries for 90 days, shifting his focus squarely on China by raising
tariffs on Chinese imports to a record 145%. In response, China hiked its own
tariffs on U.S. goods to 125%, restricted American firms, and returned Boeing
aircraft intended for Chinese carriers.
According to The Wall Street Journal, the Trump
administration is actively pressuring trade partners to limit dealings with
China. This includes discouraging nations from serving as transit hubs for
Chinese goods, blocking Chinese companies from circumventing U.S. tariffs by
setting up local operations, and refusing entry to inexpensive Chinese
products.
Beijing, seeking to capitalize on the uncertainty, is
deepening its diplomatic efforts. Chinese officials have been in contact with
counterparts in Japan, South Korea, and the European Union to promote closer
economic cooperation. However, the outreach is met with cautious optimism. Many
nations worry about being flooded with Chinese goods diverted from the U.S.
market and fear possible retaliation from Washington.
Despite Xi’s diplomatic push, China’s track record on
coercive trade practices and regional aggression continues to spark concern.
Elizabeth Economy, a senior fellow at Stanford’s Hoover Institution, noted that
while countries may be open to stronger trade ties with China, they remain
wary.
“For many of
these countries, even when China is a larger trading partner, the United States
is often a much larger export market. So they have significant stakes with the
US economy as well,” she said.
She also highlighted China’s continued military
assertiveness, referencing live-fire drills near Australia and New Zealand,
ongoing tensions with Taiwan, clashes in the South China Sea, and disputes with
Japan over the Senkaku Islands.
“They’re not
stepping back in terms of their security ambitions even as they’re trying to
promote themselves as a stabilizing economic force,” Economy added. “That charm
offensive needs to be more all-embracing if Xi Jinping is actually going to
realize the kinds of benefits that he wants from what President Trump is
doing.”
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