China Vows to Fight Till the End in Escalating Trade War with the US
The Chinese Embassy in the United States reaffirmed its firm stance on the ongoing trade war with Washington, stating that it is “ready to fight till the end” after President Donald Trump imposed new tariffs on Chinese imports.
On Wednesday, major Asian markets saw an uptick after experiencing sharp declines following the U.S. government’s latest tariff hike, which targets hundreds of billions of dollars in trade between the world’s two largest economies. Chinese exports reached record levels last year, but the intensifying tariff war threatens to disrupt economic stability in both nations.
“If war is what the U.S. wants, be it a tariff war, a trade war, or any other type of war, we’re ready to fight till the end,” read a statement posted by the Chinese Embassy on X. The post referenced comments from China’s foreign ministry spokesperson, who dismissed the U.S.’s justification for the tariff hike, calling it a “flimsy excuse” related to the fentanyl crisis.
The White House recently announced a 10% tariff on all imports from China, citing the fentanyl epidemic as a reason for the move. Fentanyl, a synthetic opioid 50 times more potent than heroin, has exacerbated the opioid crisis in the United States. However, Beijing sees the U.S. policy as economic aggression rather than a genuine attempt to curb fentanyl trafficking.
In response to Washington’s latest escalation, China announced its own countermeasures on Tuesday, imposing up to 15% levies on key U.S. agricultural exports, including soybeans, pork, and wheat. While some analysts see Beijing’s reaction as a “relatively muted response” compared to Trump’s sweeping tariffs, others warn that further escalation could trigger stronger retaliatory measures from China.
China’s Economic Resilience Amid Trade Tensions
Despite the economic pressures from the trade war, China has set an ambitious annual growth target of around 5% for this year, emphasizing domestic demand as its primary economic driver. Premier Li Qiang, speaking at the National People’s Congress, underscored Beijing’s commitment to economic resilience through job creation, increased consumer spending, and fiscal stimulus.
Beijing has also announced a rare hike in fiscal funding, allowing its budget deficit to rise to 4% to combat slowing employment, low consumer confidence, and a prolonged real estate sector crisis. The government work report pledged to make domestic consumption the “main engine and anchor” of China’s economic growth.
While some experts believe the 5% growth target is achievable, they acknowledge significant economic challenges, including weak domestic consumption, structural unemployment, and the ongoing trade war’s negative impact on exports.
Rising Geopolitical Tensions and Military Spending
As trade tensions escalate, geopolitical friction between the U.S. and China continues to mount. China announced a 7.2% increase in its defense budget for 2025, reinforcing its commitment to military modernization amid regional disputes and strategic competition with Washington.
Much of China’s increased military spending is expected to fund operations around Taiwan, which Beijing claims as part of its sovereign territory. The move comes after former President Trump proposed a coordinated reduction in military expenditures among the U.S., Russia, and China—a proposal Beijing has yet to accept.
China’s growing defense budget reflects its broader strategy to assert dominance in regional security affairs, particularly as tensions over Taiwan and the South China Sea persist. Analysts predict that geopolitical competition between Beijing and Washington will only intensify in the coming years, making economic and military confrontations increasingly interconnected.
As the trade war between the U.S. and China deepens, both sides remain locked in a battle that extends far beyond tariffs—one that encompasses economic resilience, technological dominance, and global influence. With neither side showing signs of backing down, the global economy braces for the far-reaching consequences of this ongoing conflict.
