This is directed at Vietnam but countries like Thailand have also been put on notice by their norther neighbor.
From Asia Financial, July 8:
Beijing warns it will retaliate against nations that strike deals with the US that cut China out of supply chains. It also urged the US not to restore tariffs on its goods next month
Concern is rising in Beijing about the Trump Administration’s tariff deals, both with China and its neighbours in Southeast Asia.
China is particularly worried about aspects of the framework deal the US signed with Vietnam that would impose a 40% tariff on Chinese goods shipped to the US via ports in Hanoi, which could face a 40% tariff from next month.
Beijing threatened on Tuesday to retaliate against nations that strike deals with the United States to cut China out of supply chains. It also warned the US not to escalate trade tensions by restoring tariffs on its goods next month.
Washington and Beijing agreed to a trade framework in June that restored a fragile truce, but with many details still unclear, traders and investors on both sides of the Pacific are watching to see if it will unravel or lead to a lasting detente.
On Monday, President Donald Trump began notifying trade partners of sharply higher US tariffs from August 1, after he delayed all but 10% of his April duties on most countries to give them time to strike deals with the world’s largest economy.
China, initially singled out with tariffs exceeding 100%, has until August 12 to reach an agreement with the White House to keep Trump from reinstating additional import curbs imposed during tit-for-tat tariff exchanges in April and May.
Call for dialogue
“One conclusion is abundantly clear: dialogue and cooperation are the only correct path,” the official People’s Daily said in a commentary, referring to the exchanges in the current round of China-US trade tension.The article was signed “Zhong Sheng”, or “Voice of China”, a term the paper uses to express views on foreign policy....
....MUCH MORE
Some other stories that point to what the points of contention are:
CNBC, July 3 - What the U.S.-Vietnam trade deal tells us about the future of tariffs
...Under the agreement, the U.S. will apply a 20% duty on Vietnamese imports — sharply below the 46% rate Trump had imposed in early April. U.S. imports to Vietnam will meanwhile not be subject to tariffs.
Trump also said that Vietnam had agreed to a 40% duty on any products that originally came from another country, but were sent to Vietnam for final shipment to the U.S. China has reportedly repeatedly relied on this practice, known as transshipping, to avoid trade barriers....
Reuters BreakingViews July 3 - US-Vietnam tariffs bode ill or worse for China
The Guardian, July 6 - Is Trump tariff deal really a win for Vietnam – or a way of punishing China?
MoneyControl, July 8 - Trump’s Vietnam tariff deal signals Asia’s vulnerability to US-China rivalry
