China warns of retaliation against countries 'appeasing' US over tariffs
What's the story
China has issued a stern warning to nations negotiating with the United States, saying it will take "resolute and reciprocal" measures. The warning comes after reports suggested Donald Trump plans to persuade other countries into reducing their trade with China, in exchange for tariff exemptions. The Chinese commerce ministry stated on Monday, "China firmly opposes any party reaching a deal at the expense of China's interests."
Firm opposition
China's stance on compromise and appeasement
The Chinese commerce ministry was also strongly against any compromises at China's expense. The ministry said, "Appeasement will not bring peace, and compromise will not be respected." It added that putting one's temporary self-interest above others' is like "seeking the skin of a tiger." China warned that such an approach "will ultimately fail on both ends and harm others."
Trade tensions
The trade war and its impact
The ongoing trade war between US and China has seen tariffs hitting 145% on Chinese exports to US, and 125% on US exports to China. Trump's tariffs on China are among the highest he has announced for all US trading partners. Earlier this month, Trump declared a 90-day pause on higher tariffs for all countries except China, amid concerns of a potential recession in the US.
Trade discussions
Negotiations and potential sanctions
Some countries are already negotiating with the US to cut or eliminate tariffs ahead of the 90-day deadline. However, reports indicate that Trump's team intends to use these negotiations as leverage in its trade war with China. According to the Wall Street Journal and Bloomberg, the US is gearing up to pressure those nations into restricting their trade with China or imposing monetary sanctions.
Firm stance
China's response to potential trade restrictions
Responding to the possibility of countries restricting their trade with China, the Chinese commerce ministry said, "If such a situation occurs, China will never accept it and will resolutely take reciprocal countermeasures." UK chancellor Rachel Reeves has dismissed the idea of the UK economically disengaging from China. Speaking to The Telegraph, she said, "Well, China is the second biggest economy in the world, and it would be very foolish not to engage."