Beijing has issued a strong warning to its trading partners, urging them not to yield to U.S. pressure to isolate China amid President Donald Trump’s aggressive tariff policies.
This warning is part of China’s dual approach that blends diplomatic outreach with retaliation, targeting countries caught in the crossfire of the escalating economic tensions between the world’s two largest economies.
In response to reports suggesting that the Trump administration is offering tariff exemptions in exchange for reduced trade with China, a spokesperson for China’s Commerce Ministry stated on Monday:
“Appeasement does not lead to peace, and compromise doesn’t earn respect. Pursuing temporary self-interest at the expense of others — in exchange for so-called exemptions — is akin to asking a tiger for its skin. Ultimately, this approach will result in nothing beneficial and will harm both others and oneself.”
The spokesperson stressed that China “firmly opposes any party striking a deal at the cost of China’s interests,” warning that Beijing would “resolutely implement reciprocal countermeasures” should such situations arise.
This warning follows Chinese President Xi Jinping’s recent tour of Southeast Asia, during which he presented China as a stable and committed advocate for global trade. His visits to Vietnam, Malaysia, and Cambodia aimed to strengthen bilateral ties, secure cooperation agreements, and position China as a contrast to the erratic policies of the Trump administration.
As global markets grapple with increasing tariffs and disrupted supply chains, many countries are trying to balance their relationships with both economic powerhouses.
President Trump has recently paused broad “reciprocal” tariffs for 90 days while concentrating on China, raising tariffs on Chinese imports to a historic 145%. In retaliation, China has raised its own tariffs on U.S. goods to 125%, restricted American companies, and returned Boeing aircraft meant for Chinese airlines.
According to The Wall Street Journal, the Trump administration is actively encouraging trade partners to limit their interactions with China. This includes discouraging nations from acting as transit points for Chinese goods, blocking Chinese firms from avoiding U.S. tariffs by establishing local operations, and denying entry to low-cost Chinese products.
In light of this uncertainty, Beijing is intensifying its diplomatic outreach. Chinese officials have been engaging with counterparts in Japan, South Korea, and the European Union to foster economic collaboration.
However, this outreach is met with cautious optimism, as many countries worry about being inundated with Chinese goods redirected from the U.S. market and fear potential retaliation from Washington.
Despite Xi’s diplomatic initiatives, concerns regarding China’s coercive trade practices and regional assertiveness persist. Elizabeth Economy, a senior fellow at Stanford’s Hoover Institution, pointed out that while countries may be inclined to strengthen trade relations with China, they remain cautious.
“For many of these countries, even if China is a larger trading partner, the United States often represents a much larger export market. They thus have significant stakes in the U.S. economy as well,” she noted.
She also drew attention to China’s ongoing military assertiveness, citing live-fire drills near Australia and New Zealand, persistent tensions with Taiwan, confrontations in the South China Sea, and disputes with Japan over the Senkaku Islands.
“They’re not backing down in terms of their security ambitions, even while trying to position themselves as a stabilizing economic influence,” Economy added. “For Xi Jinping to achieve the benefits he seeks from President Trump’s policies, this charm offensive needs to be more comprehensive.”
