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China is ready for a protracted conflict in response to the intensification of the US trade war.
After the Donald Trump administration announced new duties on Chinese goods, official Beijing reacted strongly by imposing counter-sanctions and declaring its readiness to withstand economic pressure from Washington. This was reported by Reuters.
“If Washington insists on waging a customs or trade war or any other form of conflict, China is ready to go all the way,” Chinese Foreign Ministry spokesperson Lin Jian said at a press conference on Tuesday.
According to him, Beijing has never succumbed to pressure or intimidation and considers the US attempts to increase economic pressure on China a “gross mistake”.
China announces tough countermeasures
Beijing quickly responded to the new US customs restrictions by introducing:
- Increase in duties by 10-15% for key US goods, including agricultural products and food.
- Export and investment restrictions for 25 US companies due to national security concerns.
These steps were a response to the 10% increase in duties on Chinese goods introduced on Tuesday, which increased the overall burden on China’s exports to 20%. The White House explained its actions by Beijing’s allegedly insufficient efforts to combat drug trafficking.
US vs. China: a new level of confrontation?
Beijing has accused the Trump administration of blackmail and claimed to have one of the world’s toughest anti-drug policies.
However, analysts note that China still has room for diplomatic manoeuvre. For example, duties on US goods were raised only to 15%, although the Chinese authorities had the opportunity to impose tougher sanctions.
“This is a signal that China wants to negotiate, not escalate,” said Yiwen Pei, economic analyst at Trivium China.
Is it possible to avoid a protracted trade confrontation?
According to experts, the fate of the negotiations depends on the ability of Donald Trump and Xi Jinping to find a compromise. If the two leaders fail to reach an agreement, the situation could escalate into a full-blown trade war 2.0.
