China has issued a strong warning against countries entering into trade deals with the United States that could harm Chinese interests, escalating tensions in the ongoing trade war between the world's two largest economies. On April 21, the Chinese Commerce Ministry accused Washington of abusing tariffs and explicitly stated that it would take "resolute and reciprocal" countermeasures against any nation that strikes a deal detrimental to China. This rhetoric follows a Bloomberg report suggesting that the Trump administration is planning to pressure countries seeking tariff reductions or exemptions to curb their trade with China, including the possibility of monetary sanctions. President Donald Trump recently imposed significant tariffs, affecting numerous countries but most heavily targeting China. The latest round of tariffs raised Chinese import duties to 145%, to which Beijing responded with retaliatory tariffs of 125% on U.S. goods, effectively creating a trade embargo between the two nations. China has signaled that it will not escalate its tariffs further, indicating a potential strategy of maintaining a firm but measured stance. Beijing's concern over the U.S. leveraging tariffs to sway global trade relationships was further highlighted when it announced plans to convene an informal United Nations Security Council meeting to accuse Washington of bullying and "casting a shadow over global peace and development." The U.S. has been engaging in bilateral talks with several countries, pushing for adjustments in trade policies. Japan, for instance, is considering increasing soybean and rice imports from the U.S., while Indonesia is looking to boost U.S. food and commodity imports and reduce orders from other nations. Six Southeast Asian countries have been hit with tariffs ranging from 32% to 49%, threatening their trade-reliant economies that have benefited from investments shielded by previous levies on China. The semiconductor industry is another critical front in this trade war. The Trump administration has imposed new curbs on AI chip exports to China, citing security concerns. This move has led to significant financial impacts, with AI chip giant Nvidia taking a $5.5 billion charge due to the export restrictions. China's President Xi Jinping recently visited three Southeast Asian countries—Vietnam, Thailand, and Indonesia—to strengthen regional ties and encourage opposition to what he considers unilateral U.S. bullying. Xi emphasized the importance of "tearing down walls" and expanding China's circle of trading partners. China’s customs agency reported that ASEAN (Association of Southeast Asian Nations) is now China's largest trading partner, with total trade value reaching $234 billion in the first quarter of 2025. The U.S., on the other hand, remains ASEAN’s fourth-largest trading partner, with trade totaling about $476.8 billion in 2024. Economic ministers from Thailand and Indonesia are currently in the U.S. to negotiate trade terms, with Malaysia set to join later in the week. These negotiations reflect the delicate balancing act these countries must perform, caught between the economic powerhouses of China and the U.S. Xi’s statement in Vietnamese media, which did not explicitly mention the U.S., highlighted the sentiment that "there are no winners in trade wars and tariff wars," underscoring China's desire for a peaceful resolution and regional solidarity. Industry experts and policymakers have been closely monitoring the situation. Bo Zhengyuan, a partner at China-based policy consultancy Plenum, noted that many countries, especially in Southeast Asia, have high reliance on China in terms of investment, industrial infrastructure, technology, and consumption. This dependency makes it unlikely that these nations will fully align with U.S. demands, as it would severely impact their economic stability and growth. China's stance and the international community's response indicate a growing resistance to the U.S. hardline trade policies, which could potentially lead to a broader realignment of global trade relationships. The financial markets have shown anxiety, with concerns over a severe disruption in world trade that could push the global economy into recession. As the trade war continues, the roles of ASEAN and other key trading partners will be crucial in shaping a stable and mutually beneficial global trade environment.