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New Trade War Front? China Threatens Allies Over U.S. Negotiations

China’s Ministry of Commerce issued a strong warning to nations considering trade agreements with the United States that could potentially harm Chinese economic interests. In a formal statement released Monday, Beijing emphasized its opposition to “any deals concluded at the expense of China” and stated it would be prepared to take reciprocal countermeasures.

The warning comes amid a flurry of negotiations between the U.S. and its global partners aimed at reducing or removing tariffs originally imposed during President Donald Trump’s earlier term in office. Washington is reportedly offering concessions in exchange for cooperation on restricting trade ties with China, particularly in high-tech and industrial sectors.

In its statement, the Chinese government underscored its intent to “strengthen solidarity and coordination” with other countries in response to what it views as unilateral pressure from the United States.

According to Bloomberg, Trump’s economic team is currently exploring the implementation of so-called “secondary tariffs” — penalties on imports from countries that maintain close trade ties with China. The U.S. is also pressuring partners not to absorb surplus Chinese goods that may be rerouted due to American sanctions.

Reuters reports that Vietnam is preparing to limit transit of Chinese cargo destined for the U.S., while Japan and South Korea have launched direct trade consultations with Washington. Taiwan, for its part, described ongoing export control talks with the U.S. as “intensive.”

Former World Bank director in China, Bert Hofman, noted that America’s ability to build an anti-China coalition could be constrained by the unpredictability of its foreign policy. He added that China maintains significant trade surpluses with multiple countries and may need to boost domestic demand and improve coordination with trading partners to reduce tensions.

Beijing has a history of retaliating against countries that align too closely with U.S. policies. After South Korea allowed the deployment of the U.S. THAAD missile defense system in 2016, China responded by restricting tourism and hindering South Korean companies operating within China.

In 2024, China banned exports of certain strategic materials to the U.S., including gallium and germanium, both of which are critical to defense manufacturing. In April 2025, Beijing imposed new export restrictions on rare earth elements in response to a fresh round of American tariffs.

Amid the growing trade rift, China is intensifying its diplomatic engagement across Southeast Asia and Europe. Just last week, Chinese President Xi Jinping visited Vietnam, Malaysia, and Cambodia in a bid to bolster regional partnerships.

At the same time, Beijing has extended overtures to the European Union, proposing stronger cooperation to resist what it views as U.S. protectionism. China and the EU collectively account for over one-third of global trade volume.

Still, despite its assertive messaging, Beijing also issued a call for Washington to lift tariffs and “correct its mistakes,” indicating it remains open to dialogue under certain terms.

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