China Stands Firm Against Trump’s Tariff Escalation, Vows To Turn ‘Crisis Into Opportunity’

 

As countries rush to strike trade deals with the United States, China is taking a different approach—standing its ground and signaling it’s ready for a prolonged trade war with former President Donald Trump.

Within 48 hours of Trump’s announcement of sweeping new tariffs on global imports, Beijing hit back with its own retaliatory measures on U.S. goods and companies. And when Trump threatened even more aggressive levies, China responded sharply.

“The U.S. threat to escalate tariffs on China is a mistake on top of a mistake,” declared China’s Commerce Ministry. “China will never accept it. If the U.S. insists on its own way, China will fight to the end.”

This defiant stance reflects a broader strategy by Beijing: portraying itself as a resilient global player refusing to bow to what it calls U.S. “unilateral bullying.” Domestically and abroad, China is presenting the trade war as both a challenge and an opportunity.

A front-page commentary in the Chinese Communist Party’s official newspaper, People’s Daily, insisted that while the U.S. tariffs would impact China, “the sky won’t fall.” It emphasized China’s resilience since the 2017 trade war, stating, “The more pressure we get, the stronger we become.”

On Wednesday, Trump raised tariffs on all Chinese imports by 34%, pushing total duties over 54%. China responded Friday with matching 34% tariffs on American imports, export restrictions on rare earth materials, and new rules targeting select U.S. firms. Trump has threatened to raise tariffs by another 50% if China doesn’t roll back its countermeasures by Tuesday. He also canceled scheduled trade talks, escalating tensions further.

Beijing’s response, however, suggests confidence. Chinese officials believe the disruption could backfire on the U.S. and hurt its global standing more than it damages China.

“Many Chinese officials believe the U.S. is making a strategic error,” said Ryan Hass, a senior fellow at the Brookings Institution. “There’s debate about whether we’re entering an era of global blocs or a form of globalization that excludes the U.S. China seems to prefer the latter.”

China’s Counter-Narrative: A Global Trade Leader

Amid rising tariffs, Chinese officials are casting the country as a stable, open economy committed to globalization. “China will only continue to open its doors wider, regardless of the changing international landscape,” the Foreign Ministry said Saturday.

Commerce Vice Minister Ling Ji recently met with representatives from 20 major U.S.-funded firms, including Tesla and GE HealthCare, emphasizing that China remains an “ideal, safe, and promising” destination for foreign investment.

Chinese academics echoed this sentiment. Liu Zhiqin of Renmin University said the U.S. has left China no choice: “Tolerance of bullying only invites more bullying.” Ju Jiandong, a finance professor at Tsinghua University, added that China is “ready to compete” with the U.S. to reshape global trade norms.

Still, some nations are wary of China's market leverage. Beijing has a history of using access to its economy as a tool for political pressure. And many countries fear being flooded by cheap Chinese exports, particularly as they seek to protect local industries.

But with U.S. tariffs affecting allies as well as rivals, many nations may find themselves deepening ties with China out of necessity. Beijing recently held economic discussions with Japan, South Korea, and the European Union—three regions hit with tariffs of 24%, 25%, and 20%, respectively. Southeast Asia, a major hub for companies diversifying away from China, is also feeling the strain.

Singapore’s Prime Minister Lawrence Wong didn’t hold back in his assessment. “The recent ‘Liberation Day’ announcement by the U.S. marks a seismic change in the global order. The era of rules-based globalization and free trade is over,” he said. “We are entering a new phase—more arbitrary, protectionist, and dangerous.”

Bracing for the Storm Ahead

Despite the tough rhetoric, China is preparing for a prolonged period of economic turbulence. President Xi Jinping’s government is taking steps to strengthen domestic demand, knowing that export-driven growth may falter under sustained tariffs.

The government recently pledged to “vigorously boost domestic consumption with extraordinary efforts,” according to People’s Daily, while suggesting new policy support would be introduced as needed.

Unlike in democratic nations, China’s ruling party doesn’t answer to voters, which may give Beijing more leeway to absorb economic pain. But analysts warn that the absence of high-level dialogue between the two countries raises the risk of a dangerous escalation spiral.

“Without diplomatic channels, both leaders risk getting locked into a cycle of escalation,” said Craig Singleton, a senior fellow at the Foundation for Defense of Democracies. “The longer this drags out, the harder it becomes for either side to de-escalate without losing face.”

Last year, the U.S. and China traded more than $500 billion in goods. With Trump’s tariff campaign in full swing and China refusing to back down, the global economy may be heading into an uncertain and volatile new era—one where the world's two largest economies are on a collision course with no clear off-ramp.