China has warned other countries of the consequences if they strike deals with the United States that could harm Beijing’s interests.
The mentioned statement indicates that the Asian country is ready to raise and is already raising the stakes in the trade war with the US. This statement also means that other countries seem to be a kind of party to the conflict in the context of the confrontation between Beijing and Washington on the economic plane and will face sensitive consequences for themselves. The trade war is expanding globally. Beijing is signaling that other countries when concluding deals with Washington, will be more involved in an economic confrontation in terms of consequences if it harms Chinese interests.
On Monday, April, 21, China’s Ministry of Commerce issued a statement noting that the Asian country respects nations resolving their trade disputes with the United States but resolutely opposes that either party reaching relevant agreements at the expense of Beijing. It was also noted that if a negative scenario is implemented, China will never accept the corresponding order of things and will take reciprocal countermeasures. Moreover, in a statement, the ministry highlighted that Beijing is willing to strengthen solidarity and coordination with all parties by jointly responding and resisting unilateral bullying acts.
The media drew attention to the fact that the warning from China was made public at a time when many countries were preparing for negotiations with the United States on reducing high tariffs or even canceling the relevant measures of Washington’s trade policy in certain geographical areas. US President Donald Trump imposed and then put on a 90-day pause, sweeping tariffs on about 60 trading partners.
According to media reports, Washington is pushing world capitals away from expanding and strengthening economic cooperation with Beijing. In this context, it is highlighted that the mentioned condition is necessary to normalize the terms of trade interaction with the United States. The long-term goal of the US is to push other countries to curb trade with China. Moreover, Washington is interested in other world capitals that are participants in the global economic system taking actions that may lead to rein in Beijing’s manufacturing power. The media notes that the United States is striving to form an order of things in which China will not be able to find ways around tariffs.
Donald Trump’s leading economic advisers discussed the possibility of asking other nations to impose so-called secondary levies, which are actually monetary sanctions. The relevant information was published by the media with reference to an anonymous insider who was aware of the mentioned discussion. In this case, it implies tariffs on the import of goods from certain countries that have close ties with China. Other insiders claim that the United States is seeking to situation in which trade partners refrain from absorbing excess goods from the Asian country.
In the first half of the current month, the media published information according to which Vietnam is ready to crack down on Chinese products shipped to the US through its territory and tighten control over sensitive exports to China. Insiders cited by journalists claim that through the mentioned actions, Hanoi intends to avoid the punishment from Washington via tariffs. It was also noted that Vietnam began to consider this strategy after senior United States officials, including the White House trade advisor Peter Navarro, expressed concern that Chinese goods were being sent to the US with actually fake labeling stating that these products were made on Vietnamese production sites. For Beijing, the implementation of this scheme of shipments means the opportunity to draw lower levies.
According to media reports, for several weeks Vietnam had been offering the United States various options for trade cooperation, which Hanoi expected would convince Washington to take a benign view of its huge trade surplus with America. However, these efforts ultimately proved fruitless. In the first half of the current month, Donald Trump imposed 46% tariffs on goods imported from Vietnam. The levies were then suspended by Mr. Trump for 90 days. At the same time, a pause in the implementation of a negative scenario is obviously not the same as its cancellation. Insiders quoted by the media claim that Vietnam is striving to ensure that US tariffs against this country are reduced to figures ranging from 22% to 28%.
Trade negotiations have also been initiated between Washington and Tokyo. Last week, Japanese media published information according to which the Asian country plans to review its car safety standards as part of an effort to strike a trade deal with the United States. This information was published after Japan’s chief negotiator Ryosei Akazawa kicked off tariff discussions with US counterparts in Washington. Media reports say preparations are currently underway for the second round of negotiations between the Asian country and the United States.
It is worth noting that US carmakers have long complained about perceived non-tariff barriers preventing their access to the Japanese market. In this case, among other things, stringent safety standards are implied. A report by the United States Trade Representative cited Japan’s non-acceptance of US safety standards certification as providing an equal level of protection as its own standards, unique testing protocols, and obstacles to establishing distribution and service networks. This report was published last month.
According to media reports, Japan’s Prime Minister Shigeru Ishiba’s government is convinced that there is an opportunity to ease some safety criteria. In this case, among other things, the rules concerning testing for crash safety are mentioned. Shigeru Ishiba, during a conversation with media representatives last week, said that Tokyo has to recognize the difference in traffic conditions. The Prime Minister also noted that Japan pays great attention to the safety of pedestrians, while the United States emphasizes vehicle passengers’ protection from strong collisions.
According to media reports, Tokyo is seeking to find bargaining chips in negotiations with Washington. Japan’s efforts are aimed at rolling back the 24% tariffs, which were temporarily reduced to 10%. Moreover, Japan faces 25% US levies on shipments of cars, steel and aluminum. The media noted that as part of its negotiating strategy, Tokyo intends to increase rice imports.
Japan’s Finance Minister Katsunobu Kato is making final arrangements to hold talks with US Treasury Secretary Scott Bessent on April 24. Shigeru Ishiba said that an honest discussion on currencies will take place between the two ministers. He did not comment on what actions would be taken if Washington urged Tokyo to curb the weakening of the yen.
The media noted that Donald Trump has complained about the costs of keeping US troops in Japan. Shigeru Ishiba stated that security and tariffs are separate issues, which, in his opinion, it is not quite right to discuss together. He also noted that negotiations will take some time. According to him, any deal should be desirable to both sides. In this context, he noted that if one side wins and the other loses, it will not be a model for the world.
Taiwan, which is facing 32% US tariffs, also described its intensive discussions with the United States on export controls. Moreover, this week South Korea’s top trade official will visit the US to kick-start negotiations. According to media reports, Seoul is striving to achieve such a result, which will mean either a reduction in tariffs from the United States or the complete abolition of the relevant measures. South Korea is facing 25% US tariffs. These measures have been delayed, which gives the country a kind of respite and an opportunity to negotiate more favorable terms of trade cooperation with the United States. Seoul is also affected by Washington’s 25% levies on shipments of cars, steel, and aluminum.
Bert Hofman, a former World Bank country director for the country, said Beijing should not worry too much about the Donald Trump administration forming an anti-China coalition. According to the expert, Washington is unlikely to be able to do this due to its erratic style of policymaking. At the same time, Bert Hofman noted that China does run big trade surpluses with certain nations and the best way to resolve this tension is to boost domestic demand to reduce surpluses and coordinate with other countries to avoid knock-on tariffs in response to tariff war.
It is worth mentioning that in the past, Beijing targeted world capitals, which cooperation with Washington it identified as damaging. For example, in 2016, the United States and South Korea reached an agreement on deploying a missile defense system called Thaad. Washington has stated that the system is designed to counter threats from North Korea. Beijing argued that Thaad would disrupt the strategic balance in the region and that its radar would monitor Chinese missile systems. As part of a kind of retaliatory measures due to the implementation of the mentioned agreement, China suspended sales of package tours to South Korea and generated various obstacles to the activities of companies from the specified country. Over time, Seoul and Beijing agreed to move past the spat. At the same time, Thaad batteries remained in South Korea.
Last year, China announced that it was banning both the sale of dual-use items to the American military and the export of materials such as gallium and germanium to the United States. It was also noted separately that companies and people abroad will be subject to these restrictions.
As for China’s ability to take countermeasures in the context of a trade war, this implies a significant choice of ways to act. In the relevant context, it is worth noting that the Asian country is the world’s largest supplier of dozens of rare earth minerals, which are critical for the communications and defense industries. According to media reports, fears have increased in Washington that Beijing may use its dominant position in the mentioned area after China placed initial export controls on germanium and gallium.
Also in the current month, the Asian country announced countermeasures in response to tariffs from the United States. In this case, China not only imposed levies but also tightened export controls on rare earths, which shipments, as reported by the media, were actually suspended as producers grappled with tighter permit requirements.
The United States imposed tariffs of up to 245% on the Asian country. China’s countermeasures provide for 125% levies against the US.
Amid the trade war, Beijing has also stepped up its diplomatic efforts in Southeast Asia and Europe. Last week, the President of the People’s Republic of China Xi Jinping visited Vietnam, Cambodia, and Malaysia. The purpose of these trips was to strengthen regional ties to counter against tariffs.
