China threatens countries that appease Trump in tariff war
Beijing has threatened to punish countries that “appease” Donald Trump in trade deals while hurting China’s interests.
China’s commerce ministry said it will firmly oppose any nation striking a deal at its expense, and “will take countermeasures in a resolute and reciprocal manner”.
The warning follows reports that the US President will pressure nations, including the EU and UK, into restricting their trade with China in exchange for tariff exemptions.
China has retaliated to Mr Trump’s tariffs of 145pc by hitting US imports with levies of 125pc, effectively halting trade between the two countries.
The US President paused “Liberation Day” tariffs on all countries earlier this month, with the exemption of China, singling out the world’s second largest economy.
A spokesman for the ministry said: “China firmly opposes any party reaching a deal at the expense of China’s interests.
“If this happens, China will never accept it and will resolutely take countermeasures in a reciprocal manner. China is determined and capable of safeguarding its own rights and interests.
“Appeasement will not bring peace, and compromise will not be respected. To seek one’s own temporary selfish interests at the expense of others’ interests is to seek the skin of a tiger.”
As part of trade negotiations with the US, it is understood that countries will be urged by Mr Trump to block cheap Chinese imports and prevent Chinese firms from expanding to their territory, as well as shipments passing through their countries.
The warning is a test for Britain’s loyalties to the US, as Chancellor Rachel Reeves prepares to visit Washington this week to discuss a trade deal with officials of the Trump administration.
It is hoped that a trade deal between the UK and the US could be agreed within weeks.
However, in an interview with The Telegraph on Friday, Rachel Reeves rejected Mr Trump’s bid to isolate China’s economy.
She voiced her support for strengthening ties with Beijing, adding that it would be “very foolish” for Britain to disengage with the country.
Ms Reeves said: “China is the second biggest economy in the world, and it would be, I think, very foolish to not engage. That’s the approach of this Government.”
The Chancellor also suggested that she would back Shein, the Chinese fast fashion giant, in its attempts to float on the London Stock Exchange.
As part of her Washington trip, the Chancellor will have her first face-to-face meeting with Scott Bessent, Mr Trump’s treasury secretary.
She is also set to meet with G20 and G7 finance ministers in Washington and attend the International Monetary Fund annual summit.
Source : Telegraph
