Escalating Trade Tensions: China Denounces US Tariffs and Warns of Further Retaliation
The relationship between the US and China has reached a critical juncture as trade tensions continue to escalate. China’s Foreign Ministry spokesperson, Lin Jian, strongly condemned US Defence Secretary Pete Hegseth’s statement that the US is “prepared” to go to war with China. This came in response to Beijing’s warnings over the deteriorating trade situation. Lin Jian criticized the Trump administration’s decision to impose higher tariffs on Chinese imports, labeling the move as a war that "should not be fought and cannot be won." The Chinese government has consistently argued that coercion and threats will not intimidate China, and its resolve to defend its national interests remains unwavering.
The Trump administration has raised tariffs on Chinese imports twice since taking office in January, prompting China to retaliate with its own measures, including duties and restrictions on American goods and companies. Chinese Commerce Minister Wang Wentao emphasized that China expects mutual respect in its dealings with other countries. He warned that if the US continues down this path, China will respond with equal force. "We will fight to the end," Wang declared, underscoring Beijing’s determination to protect its economic interests.
Despite the tough stance, Wang also stressed China’s openness to resolving trade differences through dialogue. He suggested that both sides could meet at an appropriate time to discuss their disagreements, with communication teams engaging as soon as possible. However, he dismissed the US’s attempt to blame China for its fentanyl problem as a misguided justification for imposing tariffs. Wang made these remarks on the sidelines of China’s annual national congress, where officials reiterated Beijing’s call for talks and highlighted China’s role as a major trading partner to 140 countries worldwide.
China’s Economic Resilience and Strategic Response
Chinese officials have outlined a series of strategies to boost the nation’s economy and financial markets amid the challenges posed by the trade war. Wang Wentao acknowledged that Chinese exporters face significant difficulties but emphasized that the government is encouraging companies to expand globally by participating in trade shows and exploring new markets. Additionally, Beijing is increasing financial support for export credit and aims to grow trade in services and e-commerce. "We do not put all our eggs in one basket," Wang said, highlighting China’s diversification efforts.
The Chinese government is also drafting a “specialized plan of action” to stimulate consumer spending and investment. While specific details were not disclosed, the plan reflects Beijing’s commitment to addressing economic slowdowns caused by a slump in the housing market, lackluster share prices, and the lingering effects of the COVID-19 pandemic. Zheng Shanjie, head of the National Development and Reform Commission, noted that economic growth forecasts for 2025 are expected to fall between 4.6% and 4.8%, slightly below the government’s target of “around 5%.”
To address these challenges, Finance Minister Lan Fo-an announced plans to increase spending on “livelihood and consumption,” with a focus on supporting deeply indebted local governments and investing in critical areas such as education, social security, and public health. Lan emphasized the importance of ensuring that every yuan is spent wisely, adding that the central government has left ample room for policy implementation. These measures aim to stabilize the economy and foster sustainable growth in the face of both domestic and international pressures.
China’s Call for Dialogue and Mutual Respect
Amid the escalating tensions, Chinese officials have repeatedly called for dialogue and mutual respect. Wang Wentao emphasized that China remains committed to resolving trade disputes through peaceful and constructive means. He noted that China’s role as a key trading partner to 140 nations underscores its ability to navigate the global economy with flexibility. Despite the challenges, China has not announced any major new initiatives, instead focusing on strengthening existing strategies to bolster its economy and financial markets.
The Chinese government’s approach reflects a delicate balance between firmness and diplomacy. While officials have made it clear that China will not back down in the face of coercion, they have also emphasized the benefits of cooperation. By encouraging dialogue and maintaining an open stance, Beijing hopes to find a resolution that works in the interest of both nations. As the trade tensions continue to unfold, China’s ability to adapt and respond will be crucial in shaping the future of its relationship with the US and the global economy.
