China vows retaliation if it’s hurt by US-Vietnam trade deal

[BEIJING] China said it was examining a trade deal that the US and Vietnam clinched and would retaliate if its interests were hurt – a sign that tensions between Beijing and Washington risk worsening as more of the pacts are finalised.

“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 Yongqian, a spokeswoman for the Ministry of Commerce, said at a press briefing in Beijing on Thursday (Jul 3).

“If such a situation arises, China will firmly strike back to protect its own legitimate rights and interests,” she added, without elaborating on what those steps would entail.

The comments are a reiteration of China’s line since the US started working on a slew of deals with trade partners around the world that are aimed at trimming America’s trade deficit. They come after US President Donald Trump said he had reached an agreement with Vietnam that places a 40 per cent levy on any goods deemed to be transshipped through the country.

Some companies have been moving products made in China through Vietnam to skirt US tariffs, activity the Trump administration wants to curtail.

When asked about the status of a probe into European Union brandy sold in China, He said the ministry would make a final decision in the coming days. BLOOMBERG