^{Source: Al Jazeera}

China has issued a stern warning to countries considering alignment with recent U.S. trade policies, emphasizing that any agreements undermining Chinese interests will prompt decisive counteractions. This development intensifies the ongoing trade conflict between the world's two largest economies, with potential global economic repercussions.​

China's Position

The Chinese Ministry of Commerce has expressed strong opposition to nations entering trade agreements with the U.S. that could be detrimental to China. In a statement, the ministry asserted that such actions would compel China to implement reciprocal measures to safeguard its interests. ​

This warning follows reports that the U.S. administration plans to leverage tariff negotiations to pressure allies into reducing economic engagements with China. The U.S. has recently escalated tariffs on Chinese goods to 145%, prompting China to respond with 125% tariffs on American imports. ​

Retaliatory Measures by China

In response to the heightened tariffs, China has implemented several countermeasures:​

• Tariffs on U.S. Goods: Imposed 15% tariffs on coal and liquefied natural gas, and 10% tariffs on crude oil, agricultural machinery, and large-engine vehicles. ​
• Export Controls: Expanded restrictions on critical minerals essential for high-tech industries, including tungsten, tellurium, bismuth, molybdenum, and indium. ​
• Unreliable Entity List: Added U.S. companies, such as Illumina, to a list that subjects them to trade and investment restrictions in China. ​

Legal Actions and International Diplomacy

China has filed a lawsuit with the World Trade Organization (WTO) challenging the U.S. tariffs, arguing they violate international trade rules. The Ministry of Commerce emphasized China's commitment to defending its rights through legal channels and maintaining the integrity of the multilateral trading system. ​

Additionally, China has criticized the U.S. for using tariffs as a coercive tool, urging a return to equitable and respectful trade negotiations. ​

Global Implications

The escalating trade tensions have placed other nations in a challenging position. Countries like Japan and Indonesia are engaging in bilateral trade discussions with the U.S., while also maintaining significant economic ties with China. The ASEAN bloc, conducting substantial trade with both superpowers, finds itself at the center of these geopolitical tensions. ​

Markets have reacted with caution, as investors weigh the potential impact of the trade conflict on global economic growth. Analysts warn that prolonged tensions could disrupt supply chains and increase costs for consumers worldwide. ​

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China's recent warnings and retaliatory actions underscore the seriousness with which it views the current trade disputes. As both China and the U.S. stand firm in their positions, the international community watches closely, aware that the outcomes of these tensions will have far-reaching economic consequences.

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