As the US tightens its grip on trade with China, Beijing warns nations against appeasing Washington in a growing trade war, threatening ‘countermeasures’ that could upend global supply chains.
The US has been reportedly pressuring countries to curb trade with China to avoid huge new tariffs. In response, Beijing has threatened ‘countermeasures‘ against trade partners that act against its economic interests.
With a population of over 1.4 billion, China has become the world's most populous country.
The country's economic growth has been rapid, with GDP increasing from $1.2 trillion in 2000 to over $14 trillion in 2020.
China is also home to several UNESCO World Heritage Sites, including the 'Great Wall' and the 'Forbidden City'.
The country has a diverse geography, ranging from mountains to deserts, and a rich cultural heritage, with over 56 ethnic groups.
China's economic and technological advancements have made it a major player on the global stage.
Several nations are negotiating with the US to avoid these new tariffs, which would hurt their exports to the world’s largest economy. The US Trade Representative, Jamieson Greer, said nearly 50 countries have approached him to try to avoid the new tariffs, which Trump says will address huge trade imbalances between the US and the rest of the world.
However, China has warned other countries against appeasing the US in this growing trade war. The country’s Commerce Ministry released a statement saying that ‘appeasement will not bring peace and compromise will not be respected.‘ Beijing added that it would ‘resolutely take reciprocal countermeasures’ against any nation acting in this way.
Countries Weighing Their Options
Japan is considering raising US soybean and rice imports as part of its deal with Washington. South Korea has outlined a plan that would include new US liquefied natural gas (LNG) purchases, along with shipbuilding and pipeline joint ventures. Taiwan’s president, Lai Ching-te, has offered zero tariffs as a basis for talks, while Taiwanese firms plan increased US investments to sweeten the deal.
Indonesia says it is planning to increase US food and commodities imports and reduce orders from other nations. The European Union has paused retaliatory tariffs on $23 billion of US imports to allow negotiations to continue.
The Fine Line Countries Must Tread
Many countries have grown heavily reliant on trade with China over the past 20 years and are seeking further opportunities. By striking new energy deals with the US, Asian neighbors could force China, the world’s largest LNG importer, to rely on more expensive, less reliable sources. However, they must tread a fine line, as most countries have come to appreciate the benefits of trade with China.
A Delicate Balance
China portrays itself as a stable trade partner amid tariff war. The country has vowed to fight the trade war ‘to the end.‘ If countries remain in place, the new US tariffs allow China’s rivals to ramp up manufacturing specifically for the US market. But they must balance their ties with both China and the US to avoid losing out on economic opportunities.
The situation is complex, and it remains to be seen how countries will navigate this delicate balance.
