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China issues economic warning over US ties in Asia-Pacific

China's state-run Global Times says nations that side with the US in the Asia-Pacific will be punished economically, while warning of Chinese "countermeasures" to the US military build-up in the region.

The nationalist tabloid, owned by Communist Party mouthpiece the People's Daily, warns of China's ability to out-spend the US to safeguard its Asia-Pacific interests, and suggests an "all-out conflict" may be possible.

The Global Times said China would not "stand idly by" as Asian nations strengthened their ties with the US.

Click to read story at The Australian