China warned Monday that it would “take countermeasures” against countries that try to curry favor with the US by hurting Beijing. More than 70 countries have reached out to Washington in hopes of brokering deals to avoid eye-watering tariffs, and US President Donald Trump said last week that Latin American countries should “maybe” choose between trade with China and America.
Chinese President Xi Jinping launched a tour of Southeast Asia this month, visiting key trade partners and calling for an “open and cooperative international environment” that rejects “tariff abuse.” But given the reliance of countries like Vietnam and Cambodia on US markets, Beijing may need more than words.
What comes next: Major players are kicking off talks with the US, with Japan starting last week and South Korea meant to commence within days, and Vice President JD Vance meeting with Indian Prime Minister Narendra Modi in New Delhi on Monday.
Keep your eye on smaller players: Kenyan President William Ruto arrives in Beijing Tuesday, as his burgeoning economy faces strain from US aid clawbacks. For economies in the developing world like his, taking Beijing’s side might be the best hedge available.
