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Tariffs

China Warns Countries Against Striking Trade Deals with US

Strategic Insights

— 2 min read

China has issued a warning to nations against pursuing trade agreements with the United States at its expense, escalating tensions in a rapidly escalating trade war between the world's two largest economies. This move comes as countries prepare to engage in talks with the US to secure exemptions from tariffs imposed by President Donald Trump's administration, which has been pressuring other nations to isolate China. The warning highlights the complex dynamics at play in global trade, as countries navigate their relationships with both China and the US. China's rapid ascent as a trading superpower has led to a significant shift in global trade patterns, with the country becoming the largest trading partner for at least 60 countries.

Key Takeaways:

  • China's Commerce Ministry has warned other nations that joining the US in its trade war against China will have negative consequences, using the analogy of trying to skin a tiger.
  • The US has imposed reciprocal tariffs on China, with China retaliating with duties of its own, effectively creating a trade war between the two nations.
  • The Trump administration has initiated talks with East Asian allies over tariffs, with Japan and South Korea set to engage in negotiations in the coming weeks.
  • Many countries, including Vietnam, are caught in the crossfire of the US-China trade war, as they rely on both nations for trade.
  • The Lowy Institute report highlights that in 2023, about 70% of countries imported more from China than they did from the US, reflecting China's significant rise as a trading superpower.
  • The report also notes that 112 economies traded more than twice as much with China as they did with the US in 2023, up from 92 in 2018.
  • Economist Alicia Garcia-Herrero argues that many countries cannot do without China, as its exports are almost irreplaceable in critical areas like minerals and silicon chips.

Statistics:

  • US trade levees on most Chinese exports have climbed to 145% (Aljazeera, 2025)
  • Beijing has retaliated with duties of 125% on US goods (Aljazeera, 2025)
  • China has become the largest trading partner for at least 60 countries (Lowy Institute, 2023)
  • The US is the largest trading partner for 33 economies (Lowy Institute, 2023)
  • 112 economies traded more than twice as much with China as they did with the US in 2023 (Lowy Institute, 2023)
  • Around 70% of the world's economies now trade more with China than with the US (Lowy Institute, 2023)

Sources:

  • Al Jazeera: "How Trump flipped on pausing tariffs" (2025)
  • The Wall Street Journal: "Trump seeks to use tariff talks to curb trade with China" (2025)
  • Lowy Institute: "The Rise of China's Global Trade" (2023)
  • Al Jazeera: "US-China trade war escalates as markets take another hit" (2019)
  • Al Jazeera: "Did Xi Jinping succeed in winning support against Trump's tariff war?" (2025)

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