China will not succumb to intimidation and can withstand the increased tariffs imposed by US President Donald Trump, along with other economic challenges, the Chinese commerce minister stated on Thursday, reports AP.
However, he emphasised that “there are no winners in a trade war.”‘
If US wants war, we are ready’: China
Addressing reporters on the sidelines of China’s annual national congress session, Wang Wentao reaffirmed Beijing’s call for negotiations. He asserted that coercion and threats would not succeed, highlighting China’s role as a key trading partner for 140 nations, which provides it with diverse alternatives. Wang and other officials outlined Beijing’s economic and financial strategies but did not introduce any major new initiatives.
China open to dialogue but resolute against US tariffs
Since taking office in January, the Trump administration has twice raised tariffs on Chinese imports. In retaliation, China has imposed duties and other restrictions on American goods and businesses. Wang stressed that China expects mutual respect in its international dealings.
“Coercion and threats will not work on China, nor will they intimidate us. China remains steadfast in defending its own interests,” Wang stated, reiterating that “there are no winners in a trade war.”
“If the US continues down this misguided path, we will respond accordingly,” he warned. “We will fight to the end.”
Despite the firm stance, Wang underscored China’s willingness to resolve trade disputes through dialogue. “Our two sides can meet at an appropriate time, and our teams can initiate discussions as soon as possible,” he said.
He also dismissed Trump’s claim that China is responsible for America’s fentanyl crisis—used as justification for imposing 20% tariffs on all Chinese imports—stating that such accusations would not address the issue.
China’s diverse global trade options
As the primary trading partner of 140 countries and regions, China has secured free trade agreements (FTAs) with over 30 nations, Wang noted.
“We are prepared to sign more FTAs,” he added.
Acknowledging the difficulties faced by Chinese exporters, Wang explained that Beijing is supporting businesses in expanding their global reach through trade fairs and international ventures. The Chinese government is also increasing financial assistance for export credit while aiming to boost trade in services and e-commerce.
“We do not rely on a single market,” he remarked.
China keeps its economic growth target at 'around 5%' despite a looming trade war
Strengthening domestic consumption and investment
China’s economic growth has been weighed down by a sluggish housing market, weak stock performance, limited social welfare, and job losses since the COVID-19 pandemic.
Zheng Shanjie, head of the National Development and Reform Commission, China’s top economic planning agency, acknowledged that growth projections for 2025 range between 4.6% and 4.8%, falling short of the government’s 5% target.
To stimulate the economy, Zheng revealed that authorities are drafting a “specialised plan of action” aimed at boosting consumer spending and business investment, though he did not disclose specific measures.
Finance Minister Lan Fo-an added that China would increase spending on “livelihood and consumption,” pledging more support for heavily indebted local governments and greater investment in education, social security, and public health.
“We will ensure that every coin is well spent,” Lan assured, adding that “the central government has left ample room for policy implementation.”