Scalled time in time the concern in Beijing in relation to the trade deals of USA which are turning against Chinaa few days before the end of the duty freeze (July 9, 2025) announced three months ago by Donald Trump.
China’s concern is due to clauses in previous US agreements with the United Kingdom and Vietnam that could punish Chinese companies.
The country’s leadership fears that they could serve as a model for further agreements with the US, according to Handelsblatt.
In other words, Beijing’s fear is as follows: that the US will make trade agreements, which will impose two duties. At first speed they will enter low duties and will concern products produced in countries of origin. In the second speed there will be higher duties and will include products in their “DNA” and other countries, which will basically hit China.
This means that China is afraid of “secondary”, indirect duties, who would be indirectly affected, but also in the long run may have turned her commercial partners away.
In early April, Trump suspended the punitive duties he had announced to imports from 75 countries for 90 days. In recent days it has increased the pressure on its trade partners to conclude an agreement with the US before the expiry of the deadline.
The preliminary agreement with Vietnam announced on Thursday predicts that exports from Southeast Asia to the US will be subject to a 20%single duty. With one exception: exports from third countries that are simply redirected through Vietnam to avoid US duties will be subject to a 40%punitive duty. This is likely to aim mainly in China.
China threatens with retaliation
According to reports, more and more Chinese companies are channeling their exports to the US via Vietnam. China’s exports to Vietnam have increased abruptly since last year. At the same time, Vietnam’s exports to the US have increased. This suggests that Chinese companies use Vietnam as a crossing point to avoid the highest US duties in Chinese imports.
Shortly before the end of the tariff pause given by US President Donald Trump, Beijing is increasingly concerned about trade agreements that are opposed to China’s interests.
The agreement between the United States and Vietnam is thoroughly examining and retaliation will be obtained if it hurts China’s interests, a Chinese Ministry of Commerce spokesman warned. If this happens, “China will fight decisively”.
However, the US agreement with Vietnam is not the only one who is indirectly directed against China. The framework agreement concluded between the United Kingdom and the US in early May also contains a clause that is likely to turn against China.
Washington has promised London low duties in exports of aluminum, cars and medicines – provided they will comply with current and future US security checks. These are also going to apply to supply chains and property structures.
The measure is likely to exclude Chinese companies from the supply chains of sensitive industries. China’s leadership fears that other countries could be pressured to accept such or similar terms. The Chinese Embassy in the United Kingdom has reacted with corresponding criticism: if “one place seeks an agreement against China’s interests”, it will oppose it.
Security regulations could put Chinese companies at a disadvantage. As the agreement between the United Kingdom and the US was the first trade agreement in Trump’s second term, it could serve as a model for negotiations with other countries. The EU has stressed that it is conducting its own negotiations. However, this could explain why Beijing recently increased pressure on Brussels.
According to the Bloomberg news agency, the agreement currently negotiated by the US with India also includes the so -called “rules of origin”. According to them, Washington insists that exports can only be declared Indian if at least 60% of value creation has been made in India itself.
The US is loosening export restrictions against China
The tense relationship between China and the US recently improved slightly. For example, the US has again allowed the export of chip software, aircraft engine and ethanide in China. The removal of export restrictions is part of an agreement between China and the US that reached representatives of both sides in London in early June.
This agreement stipulates that the US will again receive rare land and permanent magnets from China in exchange for relaxing certain export restrictions. However, US trade agreements with other countries could quickly put an end to this phase of little relaxation.
The world’s two largest economies also negotiate the reorganization of their trade relations. The 90 -day tariff pause agreed in Geneva in early May ends on August 12th. The US had previously imposed a punitive tariffs of up to 145% on imports from China. China responded for a 125%price, as well as export controls and measures against US companies in China.
Beijing is ‘frustrated’ by Brussels
In the meantime, there seems to be no approach between China and the EU. The country’s leadership plans to reduce the China-EU summit, which was previously scheduled for two days in just one day. This was reported by Bloomberg on Friday, citing experts. The news comes shortly after the visit of China’s chief diplomat Wang Yi in Brussels.
This shows that the talks did not satisfy Beijing. This is also illustrated by the Chinese Ministry of Commerce announcement on Friday to impose duties 27.7 to 34.9% in the EU.
China’s leaders are increasingly ‘frustrated’ than Brussels, Da Wei, director of the International Security and Strategy Center at Beijing Elite University in Handelsblatt before his visit, said. The EU is moving “too late” and defines its relationship with the People’s Republic very strongly based on the war in Ukraine and China’s cooperation with Russia.
In addition to supporting Beijing to Russia, the EU also criticizes China’s export controls to rare land and permanent magnets, as well as the high trade surplus of the People’s Republic.
The China-EU summit was to take place in Brussels this year. However, Chinese head of Chinese State Xi Jinping refused to participate. EU leaders then decided to travel to Beijing again in the hope of being able to speak with Si personally.