China has vowed to retaliate if a newly announced trade agreement between the United States and Vietnam undermines its economic interests, escalating trade tensions amid U.S. efforts to reconfigure supply chains away from China.

“We firmly oppose any party striking a deal at the expense of China’s interests,” said He Yongqian, spokeswoman for the Chinese Ministry of Commerce. “If such a situation arises, China will firmly strike back to protect its own legitimate rights and interests.”

The response follows U.S. President Donald Trump's announcement of a trade pact with Vietnam, which includes a 40% tariff on goods suspected of being re-routed through Vietnam to bypass existing U.S. tariffs on Chinese products. The move targets a growing trend of companies shifting Chinese-origin goods via third countries.

Strategic Trade Realignments

This development reflects Washington’s broader efforts to reduce its trade deficit and isolate China economically by forging bilateral deals with other nations. Meanwhile, Beijing is also reviewing an anti-dumping investigation involving European Union brandy, signaling a wider trade posture adjustment.

China’s firm stance suggests the U.S.-Vietnam deal may trigger broader geopolitical and commercial ramifications in Asia-Pacific trade relations.