Beijing Escalates Rhetoric Amid Deepening US-China Trade War

BEIJING, April 21, 2025 — China has stepped up its warnings against nations considering economic agreements with the United States, claiming that such deals could undermine its global standing and economic interests. In a fiery statement, Beijing accused Washington of abusing tariffs and using them as tools of geopolitical coercion, while pledging strong countermeasures against countries that align with the US at China’s expense.

China’s Ministry of Commerce stated that it would “resolutely and reciprocally” respond to any country striking trade deals that disadvantage Beijing. The ministry accused the US of forcing global partners into so-called “reciprocal tariffs” negotiations under the guise of fairness, describing it as a blatant misuse of trade policy.

China’s Position: Resisting Economic Bullying

“The United States has abused tariffs on all trading partners under the banner of so-called ‘equivalence’,” said a spokesperson from the Commerce Ministry. “China is determined and capable of safeguarding its own rights and interests.”Beijing emphasized that it seeks to strengthen solidarity with global partners while opposing unilateral trade policies. The warning also signals growing resistance from China to US efforts to contain its economic influence, particularly as Washington increases pressure on Beijing in sectors like technology and manufacturing.

ASEAN Caught in Crossfire

As trade tensions mount, Southeast Asian nations—key partners for both the US and China—find themselves walking a tightrope. “Nobody wants to pick a side,” said Bo Zhengyuan, a partner at the China-based policy consultancy Plenum. He noted that many Southeast Asian countries are heavily reliant on Chinese investment, infrastructure, and consumption, making them wary of siding fully with the United States.China’s President Xi Jinping recently visited three Southeast Asian countries in a diplomatic push to reinforce regional partnerships. Xi warned of “unilateral bullying” and promoted “tearing down walls” in global trade, urging nations to resist aligning with restrictive trade pacts.

US Pressures Allies Amid Semiconductor Sanctions

The United States, meanwhile, continues to curb China’s tech ambitions, particularly in AI and semiconductor manufacturing. Just last week, the Biden administration imposed additional fees on China-built vessels and placed tighter export curbs on AI chips. Nvidia, a leading American chipmaker, reported a $5.5 billion charge as a result of the export restrictions.At the same time, nearly 50 countries have reportedly initiated trade talks with US Trade Representative Jamieson Greer to address steep tariffs imposed during former President Donald Trump’s administration. Japan is considering boosting imports of US rice and soybeans, while Indonesia may reduce Chinese imports in favor of US commodities.

Markets React with Caution

Despite the harsh tone from Beijing, Chinese markets showed muted reactions. Stock indices inched slightly higher on Monday, though analysts say long-term investor sentiment remains cautious due to the unpredictable trajectory of the trade dispute and China’s economic outlook.

“There are no winners in trade wars and tariff wars,” Xi Jinping wrote in an op-ed published in Vietnamese media, emphasizing peaceful and inclusive trade cooperation without naming the US directly.

The Road Ahead: A Multipolar Trade Landscape

The stakes are high for countries balancing relations with both superpowers. ASEAN, which is China’s largest trading partner with over $234 billion in trade during Q1 2025, also counts the US as a significant partner, with $476.8 billion in trade last year alone. Economic ministers from Thailand, Indonesia, and Malaysia are currently in Washington to explore further trade cooperation, potentially complicating their regional ties with Beijing.As the world becomes increasingly multipolar, many nations are trying to avoid taking sides while maximizing economic benefits. But with Washington and Beijing both hardening their trade positions, neutrality may become increasingly difficult to maintain.