In a stern rebuke to the United States, China’s Commerce Ministry on April 21 warned countries against cutting trade deals with Washington that come at Beijing’s expense, signaling a new phase in the ongoing trade standoff between the world’s two largest economies. As the Biden administration escalates its tariff war launched during the Donald Trump presidency, China has responded with sharp rhetoric, retaliatory measures, and diplomatic maneuvers aimed at preserving its economic influence, particularly in the Indo-Pacific.

The warning follows a Bloomberg report claiming that the US is pressuring countries seeking tariff exemptions or reductions to curb their trade with China. The Commerce Ministry said in response, “China will firmly oppose any party striking a deal at China’s expense and will take countermeasures in a resolute and reciprocal manner.”

This statement underscores Beijing’s growing frustration with Washington’s increasingly aggressive trade policies, including a surge in tariffs that have now reached as high as 145% on Chinese imports. In response, China has imposed its own sweeping retaliatory tariffs of up to 125% on US goods, effectively turning the dispute into a mutual embargo.

“The United States has abused tariffs on all trading partners under the banner of so-called ‘equivalence,’ while also forcing all parties to start so-called ‘reciprocal tariffs’ negotiations,” a ministry spokesperson said. “China is determined and capable of safeguarding its own rights and interests, and is willing to strengthen solidarity with all parties.”

As Washington ramps up its pressure campaign, many nations-especially in Southeast Asia-find themselves in a precarious position, forced to navigate a delicate balance between economic giants. Southeast Asia, home to the ASEAN bloc, has been especially hard-hit. Six ASEAN countries have already been slapped with US tariffs ranging from 32% to 49%, according to US trade officials.

ASEAN, which became China’s largest trading partner last year, registered bilateral trade worth $234 billion with China in the first quarter of 2025 alone. Meanwhile, US-ASEAN trade totaled around $476.8 billion in 2024, making Washington the bloc’s fourth-largest trading partner. With so much at stake, regional economies fear being collateral damage in a geopolitical contest that threatens to derail global commerce.

“There are no winners in trade wars and tariff wars,” said Chinese President Xi Jinping in an article published in Vietnamese media during his recent diplomatic tour of Southeast Asia. Though Xi refrained from directly naming the United States, the message was unmistakable. His visits to Vietnam, Malaysia, and the Philippines were designed to shore up Beijing’s regional alliances and promote a multipolar trade framework resistant to Washington’s unilateralism.

According to sources cited by Bloomberg, the US Trade Representative’s office, under Jamieson Greer, is leveraging the promise of tariff relief to extract trade concessions from other nations, including commitments to reduce imports from China or face potential monetary penalties. Nearly 50 countries have reportedly approached Washington for discussions since the start of April.

These back-channel negotiations reflect an intensification of the US campaign to isolate China economically. Japan, for instance, is reportedly considering raising its soybean and rice imports from the US in exchange for partial tariff relief. Indonesia, too, is planning to pivot toward US food and commodity imports, even as it reduces orders from other trading partners. Economic ministers from Thailand, Indonesia, and Malaysia are all currently engaged in trade talks in Washington, seeking to avoid further penalties.

Bo Zhengyuan, a partner at the Chinese policy consultancy Plenum, doubts such pressure will lead to a significant realignment. “If countries have high reliance on China in terms of investment, industrial infrastructure, technology know-how, and consumption, I don’t think they’ll be buying into US demands,” Bo noted. “Many Southeast Asian countries belong to this category.”

In a calculated move to counter US pressure, Beijing is set to convene an informal United Nations Security Council meeting this week to accuse Washington of “bullying” and sabotaging international peace and development by weaponizing trade policy. The decision to escalate the matter to the UN level highlights China’s broader strategy of framing itself as a victim of US economic aggression, appealing to Global South countries wary of American dominance.

At the same time, Beijing is emphasizing a narrative of openness and cooperation. “We are tearing down walls,” Xi said during his diplomatic tour, “and expanding our circle of trading partners.”

The Chinese government’s rhetoric is being accompanied by targeted economic policies. For instance, China has signaled it will not increase its blanket tariffs further, perhaps to retain room for negotiation while projecting confidence in its domestic economy’s resilience.

However, not all signs point to stability. The ongoing trade war has rattled global markets, with analysts warning of a potential recession if the standoff persists. Despite this, Chinese stocks inched higher on Monday, April 21, showing limited immediate reaction to the Commerce Ministry’s warnings-though overall investor sentiment remains cautious due to longer-term growth uncertainties.

The trade conflict is just one facet of a broader strategic rivalry. The Biden administration has continued Trump-era policies aimed at stunting China’s technological ambitions. Recently, it imposed new port fees on Chinese-built vessels and extended curbs on exports of advanced AI chips, citing national security concerns.

These curbs have already impacted major players like US chipmaker Nvidia, which last week announced it would take a $5.5 billion charge due to the restrictions. Washington’s goal is to halt China’s advancement in sectors seen as critical to future military and economic supremacy.

Beijing views these moves as part of a larger campaign of economic containment. “China’s economic rise is not something the US can contain through tariffs and technology controls,” said a Chinese academic affiliated with Tsinghua University. “It only pushes us to develop greater self-reliance.”

The global trading system, once anchored by the World Trade Organization and multilateral norms, is increasingly giving way to bilateral and regional power struggles. Both the US and China appear intent on rewriting the rules in their favor, with developing nations caught in the middle.

With ASEAN and other emerging economies feeling the heat, the question becomes not just who will prevail in this titanic standoff-but whether the damage inflicted on global supply chains, consumer prices, and investment flows can ever be fully reversed.

As the trade war spirals into broader economic and diplomatic confrontation, one thing is becoming clear: the era of cooperative globalization is over, and a new age of economic bloc politics is taking its place.

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