China says it is 'tearing down walls' to expand trade alliances amid US standoff

BEIJING (Reuters) -China is "tearing down walls" and expanding its circle of trading partners, "shaking hands" instead of "shaking fists", its foreign ministry said on Tuesday, as Beijing works on diversifying ties amid an escalating trade war with the U.S.

President Donald Trump has added an eye-watering 145% of tariffs on Chinese goods this year as part of broader reciprocal duties on all U.S. trading partners. That prompted ridicule and criticism from Beijing, which retaliated by jacking up levies on U.S. goods by 125%.

"In the face of external uncertainties, China will insist on shaking hands rather than shaking fists, tearing down walls instead of building barriers, connecting instead of decoupling," Lin Jian, a foreign ministry spokesperson, told a press briefing on Tuesday.

The World Trade Organization has warned the high-stakes Sino-U.S. trade row could cut the shipment of goods between two economies by as much as 80% and severely hurt global growth.

Beijing has called U.S. President Donald Trump's tariffs strategy "a joke", irritating U.S. Treasury Secretary Scott Bessent.

"These are not a joke. I mean these are big numbers," Bessent said in a Bloomberg Television interview. "I think no one thinks they're sustainable, wants them to remain here, but it's far from a joke."

Any U.S. China negotiations would have to come from "the top," involving Trump and Chinese President Xi Jinping, Bessent also said.

Xi on Monday kicked off a three-nation tour of Southeast Asia. In Vietnam, which is facing potential U.S. tariffs of 46%, Xi called for the two countries to oppose "unilateral bullying" and to strengthen cooperation in production and supply chains.

Chinese and Vietnamese officials also signed dozens of cooperation deals during Xi's visit, including on production and supply chains as well as railway cooperation.

After a two-day stop in Hanoi, Xi will continue his Southeast Asian trip by visiting Malaysia and Cambodia, which could be slapped by additional U.S. tariffs of 24% and 49%, respectively.

A commentary published on Tuesday by China's state-run People's Daily underlined the need for unity amid the trade turbulence.

"In the face of crisis, no one can keep only to oneself," the commentary said, referencing Dorothy's adventure in the American children's story The Wizard of Oz. "Only unity and cooperation can meet the challenge."

The commentary presented China as a benevolent advocate for free trade, spotlighting China's decision to implement zero tariffs for some of its least developed partners.

(Reporting by Colleen Howe, Xiuhao Chen and Ryan Woo; Editing by Peter Graff and Kim Coghill)