China cautions countries over making deals with the U.S.

Summary

Marketplace Morning Report: China Cautions Countries Over Making Deals with the U.S. Release Date: April 21, 2025

In this episode of the Marketplace Morning Report, host David Brancaccio delves into the escalating tensions between China and the United States, exploring the broader implications for global trade and international relations. The episode also covers significant market movements, geopolitical developments, and a poignant human interest story from Afghanistan.

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China's Trade Warnings: Implications for Global Diplomacy

Guests: Nick Qureshi and BBC's Mariko Oi

The episode opens with Nick Qureshi reporting from the UK, highlighting China's recent warnings to nations that engage in deals with the United States. China has cautioned that such appeasement could provoke retaliation, signaling heightened tensions in the ongoing trade war between the world's two largest economies.

Mariko Oi, reporting from Singapore, provides deeper insights into China's ambiguous statements. She notes, “[00:38] Mariko Oi: The language is rather vague. They said appeasement cannot bring peace and compromise cannot earn respect.” This uncertainty leaves room for speculation about Beijing's exact targets and intentions.

Mariko further explains the delicate position of Asian governments caught between Washington and Beijing. “[01:31] Mariko Oi: It really feels like tensions between the two are actually a lot higher this time around.” She emphasizes that countries like Japan and South Korea are navigating these tensions carefully, with Japan having recently concluded negotiations with President Trump and South Korea preparing to engage in talks.

The discussion highlights the strategic balancing act Asian nations must perform to avoid being entangled further in the US-China trade conflict. Mariko suggests that while China’s threats are concerning, the exact nature of potential countermeasures remains unclear. “[02:35] Mariko Oi: We don't know exactly what they mean by countermeasures, but for Asian governments, both the United States and China are huge trading partners.”

This segment underscores the precarious negotiating power of countries situated between two economic superpowers, emphasizing the potential for broader international implications as the trade war intensifies.

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Geopolitical and Market Updates

US-India Economic Ties: Nick Qureshi reports on US Vice President JD Vance's visit to India, emphasizing the strategic importance of strengthening economic relations to counterbalance China's influence in the Indo-Pacific region. This move underscores the US's commitment to forging alliances that can collectively address China's growing economic and political clout.

Market Movements:

• Gold Rally: Gold prices have surged to new heights, driven by a weakening US Dollar. This rally reflects investor concerns about currency instability and economic uncertainty.

• Federal Reserve Tensions: President Donald Trump has publicly criticized the heads of the Federal Reserve, raising concerns about the potential for increased tensions between the administration and the central banking system.

• Asian Stock Performance: Asian markets have mostly climbed, buoyed by anticipation of upcoming earnings reports from major tech giants. This positive trend contrasts with the closed European markets, highlighting regional disparities in economic outlooks.

• DHL Shipment Suspensions: Logistics giant DHL has begun suspending global shipments over $800 to American consumers, a move attributed to recent changes in customs regulations. This suspension may impact international trade flows and consumer access to high-value goods.

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Human Interest Story: Afghan Women and Carpet Weaving Under Taliban Rule

Reporter: Mojub Alrozi

The episode transitions to a heartfelt report from Kabul, Afghanistan, focusing on the plight of women and girls under the Taliban regime. With education and employment severely restricted, many Afghan women have been forced into carpet weaving as one of the few available occupations.

Shakila, a 22-year-old carpet weaver, shares her dreams: “[04:42] Shakila: I always wished I could go to university and finish my studies, but unfortunately, we have to weave carpets instead.” Her sister, Samira, a former journalist, recounts the traumatic impact of a suicide bombing on their education: “[05:17] Samira: I kept going until seventh grade. Then a suicide bombing hit our school. After that, my father pulled us out.”

Despite earning less than a dollar a day, the sisters have found a semblance of hope through their craft. Their carpets, showcased internationally, symbolize resilience amidst adversity. Carpet trader Nisar Ahmad Hussaini highlights the growing industry: “[06:14] Nisar Ahmad Hussaini: Carpet export and production has risen significantly over the past three years. It's increased by 60 to 70% because the workforce has grown.”

Soleha, a 19-year-old student turned weaver, embodies silent defiance: “[06:50] Shakila: Schools and universities are closed. We can't continue our education... My dream is to build the best hospital in Afghanistan.”

Mojub Alrozi poignantly concludes, “[07:14] Mojub Alrozi: In a country where opportunity has been stripped away, these girls are weaving more than carpets. They are weaving fragments of futures stitched together with hope, strength, and silent defiance.”

This segment highlights the intersection of economic necessity and personal aspiration, shedding light on the enduring spirit of Afghan women facing systemic oppression.

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Conclusion

David Brancaccio wraps up the Marketplace Morning Report by reinforcing the interconnectedness of global economic policies, market dynamics, and human stories. The episode paints a comprehensive picture of the current geopolitical landscape, emphasizing the ripple effects of the US-China trade tensions and their broader implications for international relations and individual lives.

For listeners seeking in-depth analyses of business and economic news, Marketplace Morning Report continues to provide timely and insightful coverage, ensuring they stay informed and engaged with the world’s most pressing issues.

Transcript

[Nick Qureshi]

China warns nations against appeasing the US on tariffs. Live from the UK this is the Marketplace Morning Report from the BBC World Service. I'm Nick Qureshi in for Liana Byrne. Hello. China has warned it will hit back at countries that make deals with the US Deals it fears will hurt Beijing's interests. Aside, the trade war between the world's two biggest economies threatens to drag in other nations, if it hasn't done so already. Beijing is also threatening countermeasures. So what does this all mean? The BBC's Mariko Oi joins me from Singapore. Hi, Mariko.

[Mariko Oi]

Hi, Nick.

[Nick Qureshi]

So China, is it really worried?

[Mariko Oi]

An interesting question because if you actually listen to the wording of what they said, the language is rather vague. They said appeasement cannot bring peace and compromise cannot earn respect. So what they mean by appeasement, we don't know. And who they're talking about, we also don't know, though last week there was an editorial in a Beijing owned China daily newspaper which basically warned the European Union against trying to appease the U.S. but that's not to say that they're the only target. You know, this kind of feels like deja vu that a lot of governments, especially in this part of the world here in Asia, governments had to play a very tricky balancing act trying not to upset Washington or Beijing when the first trade war happened in 2016. And it really feels like tensions between the two are actually a lot higher this time around.

[Nick Qureshi]

Where does this leave the country's negotiating power, given these threats?

[Mariko Oi]

I think they would just be watching for now what exactly Beijing means by it. And of course, some of China's neighbors, like Japan and South Korea, they are some of the earliest negotiators with Washington. The Japanese delegations have already returned home after meeting President Trump in Washington. South Korea is due to start their negotiations this week. As I said, we don't know exactly what Beijing would consider as appeasement, but I think for now they will continue negotiating because they would very much remember all these Asian governments would remember how Beijing took that very aggressive stance when Mr. Trump announced those tariffs, whereas much of the region took a much softer approach of trying to negotiate, even lowering their own import duties on American products, trying to win some favor from Washington. But I think they will be feeling the potential threat that they could get dragged into this trade war between the world's two biggest economies.

[Nick Qureshi]

And when Beijing talks about retaliatory moves, is that equally vague?

[Mariko Oi]

Yeah, I think we don't know exactly what they mean by countermeasures but of course, for Asian governments. Both the United States and China are huge trading partners. And when Beijing threatens a possible countermeasure, it is definitely worrying.

[Nick Qureshi]

All right, Mariko. Well, I'm sure we'll find out in due course what will happen. Thanks a lot.

[Mariko Oi]

Thank you, Nick.

[Nick Qureshi]

For all this is the US Vice President JD Vance is in India for talks on expanding economic ties. The US Sees Delhi as a crucial counterbalance to China's influence in the index Indo Pacific region. All right, let's do some numbers. Gold has rallied to a new record caused by US Dollar weakness. Donald Trump criticizing the heads of the Federal Reserve and those trade war concerns. European markets are closed, but Asian stocks were mostly higher as tech giants prepared to release their latest earnings. And the logistics company DHL has started suspending global shipments over $800 to American consumers, all due to customs changes. In Afghanistan, the doors to education and employment remain shut for most women and girls. Carpet weaving, though, is one of the only trades the Taliban government allows women to work in, leaving many with no choice but to spend long hours making carpets for small wages. The BBC's Mojub Alrozi reports from the Afghan capital, Kabul.

[Mojub Alrozi]

An Afghan carpet may look like a work of art, but beneath every thread lies a deeper story. Since the Taliban came to power in 2021, girls over the age of 12 have been banned from getting an education and most women from work. Many have been pushed into long, laborious days of carpet weaving just to survive. On a cold winter day in Kabul, I arrive at a modest inside three sisters work side by side, tying silk and wool into thousands of knots.

[Shakila]

I always wished I could go to university and finish my studies, but unfortunately, we have to weave carpets instead.

[Mojub Alrozi]

Shakila, aged 22, once dreamed of becoming a lawyer. Her younger sister, Samira, a journalist. Mariam, just 13, never even got the chance to imagine a future in school. Before the Talbon government's return, they were students at Seyyid Al Shraddha Girls School until a devastating attack changed everything.

[Samira]

I kept going until seventh grade. Then a suicide bombing hit our school. After that, my father pulled us out. Now that the Taliban have come to power, security has improved. Suicide bombings have reduced, but schools are closed. We cannot study.

[Mojub Alrozi]

The three sisters created a masterpiece that was showcased at an exhibition in Kazakhstan just a few months ago. It was sold for US$18,000. But the sisters, like so many others, still earn the minimum wage of under a dollar a day. Seeing potential in this overlooked workforce, carpet trader Nisar Ahmad Hussaini started hiring young women and girls who were forced out of school weaving from home. In just a few months, he opened three carpet factories.

[Nisar Ahmad Hussaini]

Fortunately, carpet export and production has risen significantly over the past three years. It's increased by 60 to 70%. Because the workforce has grown. It's mostly made up of young women facing unemployment.

[Mojub Alrozi]

I met 19 year old Soleha in one of his factories. Denied the chance to go to university, she now spends long hours weaving in a crowded, airless room.

[Shakila]

Schools and universities are closed. We can't continue our education. I studied English privately for three years, but poverty forced me to stop. When every door closed, I came here. My dream is to build the best hospital in Afghanistan. I want to become the top physician in the world.

[Mojub Alrozi]

In a country where opportunity has been stripped away, these girls are weaving more than carpets. They are weaving fragments of futures stitched together with hope, strength and silent defiance. In Kabul, I'm the BBC's Mahdouban Nauruzi for Marketplace.

[Nick Qureshi]

And in the UK, I'm Nick Qureshi with the Marketplace morning report from the BBC World Service. I'll be back with you same time tomorrow. Thanks for listening.

[Janelli Espinal]

If there's one thing we know about social media, it's that misinformation is everywhere, especially when it comes to personal finance. Financially Inclined from Marketplace is a podcast you can trust to help you get serious about your money so you can build a life you've always dreamed of. I'm the host, Janelli Espinal, and each week I ask experts important money questions, like how to negotiate job offers, how to choose a college that you can afford, and how to talk about money with friends and family. Listen to Financially Inclined wherever you get your podcasts.