China warns of retaliation over US–Vietnam trade deal as tensions flare

China has issued a stark warning that it will retaliate if its interests are threatened by the newly finalised trade agreement between the United States and Vietnam, underscoring the growing friction between Beijing and Washington as both countries recalibrate their global supply chains. The comments, delivered at a press briefing in Beijing, reflect China’s deep concern that the US is striking trade deals across Asia designed to curb its economic clout. According to Bloomberg, China’s Ministry of Commerce made clear it would not accept being sidelined in the region without responding.

Beijing signals strong opposition

At Thursday’s briefing, He Yongqian, a spokeswoman for China’s Ministry of Commerce, said Beijing is closely reviewing the details of the US–Vietnam deal to assess whether it damages China’s commercial interests. “We are happy to see all parties resolve trade conflicts with the US through equal negotiations but firmly oppose any party striking a deal at the expense of China’s interests,” He said, as reported by Bloomberg.

She added that if the agreement were found to harm China, the country would “firmly strike back to protect its own legitimate rights and interests,” though she did not specify what form those countermeasures might take.

What’s in the US–Vietnam deal?

The warning comes just days after US President Donald Trump announced a new trade deal with Vietnam that includes a 40 per cent tariff on goods suspected of being transshipped through the country to evade existing US tariffs on Chinese-made products. As per Bloomberg, the Trump administration has targeted this practice, where companies move Chinese-made products to Vietnam, relabel them, and then ship them to the US to avoid tariffs, as part of its broader effort to reduce America’s trade deficit with China.

Trump has insisted that the new tariff structure is essential to stop what he describes as unfair trade practices and to ensure that tariffs imposed on China cannot simply be circumvented through Vietnam.

China’s broader trade worries

Bloomberg notes that Beijing’s reaction reflects a broader anxiety about US efforts to build alternative supply chains in Asia, away from China. Washington has struck or is negotiating a series of trade agreements with countries across the Indo-Pacific, aiming to diversify manufacturing bases and reduce strategic dependencies on China, especially for critical technologies and industrial goods.

This strategy has angered Chinese officials, who see it as an attempt to isolate China economically and contain its rise. The Ministry of Commerce’s latest comments are a continuation of Beijing’s tough line, signalling that any deals threatening China’s trade flows will be met with a response.

Other trade tensions simmering

China’s trade authorities also addressed another point of contention on Thursday. When asked about the ongoing anti-dumping probe into European Union brandy imports, the Ministry of Commerce said it would issue a final decision in the coming days.

That investigation has been widely viewed as a retaliatory measure against EU moves to curb Chinese electric vehicle exports, a sign that Beijing is willing to use trade policy as leverage in multiple arenas.

A fragile moment for global trade

As per Bloomberg, China’s warning over the US–Vietnam deal highlights just how fragile the global trade environment remains. While Washington and its partners seek to secure supply chains and reduce over-reliance on China, Beijing views these moves as a direct challenge to its economic interests and is promising retaliation if it believes the country is being deliberately shut out.

The escalating rhetoric underscores the risk of further trade tensions and tit-for-tat measures that could weigh on global commerce, unsettle markets, and complicate diplomatic ties well beyond Asia.

(With inputs from the agencies)