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Why China Warns Against 'Appeasing' Trump in Trade Negotiations

 **Why China Warns Against 'Appeasing' Trump in Trade Negotiations**



China has issued a strong warning to countries considering trade deals with the United States that would come at Beijing’s expense, escalating tensions in an ongoing trade war between the world’s two largest economies.


Reacting to reports that the Trump administration is pressuring nations to isolate China, a spokesperson from China’s Ministry of Commerce said on Monday that Beijing would take “resolute and reciprocal countermeasures” against countries siding with Washington.


The warning comes as many countries engage in talks with the US seeking exemptions from the "reciprocal" tariffs Trump recently paused for about 60 trading partners.


**What’s Driving the Tension?**


According to *The Wall Street Journal*, Trump aims to leverage tariff negotiations to pressure US allies to reduce trade with China, curbing Beijing’s manufacturing influence. In exchange, these countries might secure relief from US tariffs.


China’s Commerce Ministry, responding sharply, warned that prioritizing short-term gains with Washington could backfire. Using the analogy of "seeking a tiger's skin," it warned that nations aligning against China could eventually be harmed themselves.


**State of US-China Trade Relations**


While Trump suspended some tariffs for major trading partners on April 9, he intensified them against China. US tariffs now cover most Chinese exports at rates up to 145 percent, while Beijing retaliated with 125 percent tariffs on US goods.


Trump claims that these measures are essential to revitalize American manufacturing and help finance future tax cuts. Meanwhile, Chinese President Xi Jinping has been strengthening regional ties, urging Southeast Asian nations to resist unilateral "bullying."


**China’s Growing Trade Influence**


China’s dominance in global trade has only deepened. By 2023, around 70% of countries imported more goods from China than from the US, according to a report by Australia's Lowy Institute. By comparison, the United States is the leading trading partner for just 33 countries.


China’s position as a manufacturing powerhouse, bolstered by its early 2000s entry into the World Trade Organization (WTO), foreign investments, and low labor costs, has made its exports — from critical minerals to electronics — nearly irreplaceable.


**Has Trump's Previous Trade War Hurt China?**


Trump’s first wave of tariffs in 2018 did little to weaken China's global trade standing. Instead, the number of countries trading more with China than the US has only increased, from 139 in 2018 to 145 in 2023.


"Trump underestimates how vital China has become in global supply chains," said Alicia Garcia-Herrero, an economist at Natixis investment bank.


**Can Countries Risk Alienating China?**


While countries deeply tied to the US, like Mexico, might reduce Chinese imports, most of America’s trade partners cannot easily sever ties with China. China's presence in global supply chains — from Europe to the Global South — is too entrenched.


For instance, China accounts for 20% of EU goods imports and 25% of imports for countries like Bangladesh and Cambodia.


"Trump’s trade strategy is short-sighted," Garcia-Herrero added. "In fact, the more Trump threatens, the more many nations might move closer to China."




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