China’s President Xi just broke his silence on the U.S trade war mess, making it crystal clear: Beijing’s not begging, and definitely not blinking.
“For over 70 years, China’s development has relied on self-reliance and hard work — never on handouts from others, and it is not afraid of any unjust suppression. Regardless of how the external environment changes, China will remain confident, stay focused, and concentrate on managing its own affairs well.”
“If war is what the US wants, be it a tariff war, a trade war or any other type of war, we’re ready to fight till the end,”
He called trade wars unwinnable – but made it clear China’s not folding, no matter how hot it gets.
China is raising tariffs on U.S. goods from 84% to 125%.
After Beijing dropped a massive 125% tariff on U.S goods – effective tomorrow – it announced it won’t retaliate to any further U.S hikes.
China slammed Washington’s tariffs as “abnormally high,” “unilateral bullying,” and a violation of basic economic laws and common sense.
The message: We’ve matched you – now stop swinging.
Despite the United States dramatically escalating tariff threats against Chinese imports to a potential 104 per cent, analysts and Beijing’s own rhetoric suggest China is unlikely to capitulate in the intensifying trade conflict.
The dispute, which saw initial US threats of a 10 per cent tariff just months ago, has rapidly worsened.
China has responded forcefully, condemning the US actions, imposing its own reciprocal 34 per cent tariff on American goods, and vowing publicly to stand its ground.
“When challenged, we will never back down,” stated China’s foreign ministry spokesperson, Lin Jian, echoing sentiments from the commerce ministry that China “will fight to the end if the US side is bent on going down the wrong path.”
According to The Guardian, experts believe this defiant stance is deeply rooted in political necessity for Beijing.
“For President Xi, there is only one politically viable response to Trump’s latest threat: Bring it on!” Diana Choyleva, chief economist at Enodo Economics, was reported as saying.
“Having already surprised domestic audiences with a forceful 34 per cent reciprocal tariff, any appearance of backing down would be politically untenable.”
China’s confidence is bolstered by key economic factors where it holds a potential advantage. The US relies heavily on Chinese consumer goods like smartphones and computers.
Tariff hikes on these items directly impact American consumers – analysts previously predicted significant iPhone price increases even under lower tariff rates – making it harder for the US administration to deflect blame, according to Choyleva.
Conversely, China primarily imports industrial and agricultural supplies from the US, such as soybeans and aircraft components. Price increases on these goods are often easier to absorb within the supply chain before hitting consumers directly.
Furthermore, this isn’t China’s first confrontation. Since the trade war began under Trump in 2018, Beijing has actively diversified its trade relationships, significantly reducing its dependency on the US.
Notably, between 2018-2020, Brazil’s soybean exports to China surged over 45 per cent while US exports fell 38 per cent. While still a large market, US agricultural exports to China dropped from US$42.8 billion (RM193 billion) in 2022 to US$29.25 billion in 2024, hurting American farmers.
Beyond tariffs, China possesses other levers. Recent reports from nationalist bloggers, unrefuted by the foreign ministry, suggested potential retaliations including suspending cooperation on fentanyl control, investigating US firms’ intellectual property practices, or limiting Hollywood film access – possibly through state-tolerated grassroots boycotts similar to the successful campaign against South Korean retailer Lotte in 2017.
While China faces its own economic challenges, including volatile stock markets and the need to boost domestic demand, these strategic advantages and political imperatives make a capitulation seem improbable.
As US-China relations deteriorate to what analyst Bill Bishop calls an “all time low,” Beijing appears prepared to weather the storm rather than yield to US pressure.
The Coverage Malaysia