As China and the United States clash again over trade tariffs, China has warned the U.S. that it is prepared to face "any form" of war. This comes after U.S. President Trump imposed tariffs on all Chinese goods, to which China quickly retaliated by levying tariffs of 10%-15% on U.S. agricultural products, further intensifying the shadow of a trade war between the two countries.
The Chinese Embassy in the United States reposted a statement issued by the Chinese Foreign Ministry on Tuesday on the social media platform X, stating in strong terms: "If the U.S. wants war, be it a tariff war, a trade war, or any other form of war, we are ready to fight to the end." This is one of the toughest statements issued by China since Trump took office, and it comes as Chinese leaders are holding the National People's Congress in Beijing.
Chinese Premier Li Qiang announced on Wednesday that China will once again increase its defense budget, with an increase of 7.2% this year, and warned that "the world is undergoing profound changes unseen in a century, and the pace of change is accelerating." This increase in the defense budget is in line with expectations, matching the increase announced last year. Beijing is trying to send a message to its domestic population that it is confident in maintaining the growth of the Chinese economy under the threat of a trade war.
China has been working to shape a stable and peaceful image, in contrast to the United States. Beijing has accused the U.S. of being mired in wars in the Middle East and Ukraine. China may also hope to capitalize on Trump's tariff actions against U.S. allies such as Canada and Mexico, but at the same time, it does not want to escalate its rhetoric excessively, so as not to scare away potential global partners. Premier Li Qiang emphasized in a speech in Beijing on Wednesday that China will continue to open up to the outside world and hopes to attract more foreign investment.
China has repeatedly emphasized in the past that it is ready for war. Last October, Chinese President Xi Jinping called on the military to strengthen its preparedness for war, at a time when Chinese forces were conducting military exercises around Taiwan. However, there is a difference between military preparedness and truly being ready to go to war. The post by the Chinese Embassy in Washington quoted the Chinese Foreign Ministry's English statement from the previous day, which also accused the U.S. of blaming China for the influx of fentanyl. A Foreign Ministry spokesperson stated: "The fentanyl issue is an untenable excuse for the U.S. to raise tariffs on Chinese imports." He also added: "Intimidation will not scare us. Bullying will not work on us. Applying pressure, coercion, or threats is not the right way to deal with China."
U.S.-China relations have been one of the most contentious relationships in the world. The post on X has been widely shared and could be used by China hawks in the Trump cabinet as evidence that Beijing is Washington's biggest foreign policy and economic threat. Beijing officials had hoped for a more amicable start to U.S.-China relations during Trump's presidency, after Trump invited Xi Jinping to his inauguration. Trump also said that the two leaders had a "very good call" days before he entered the White House. There had been reports that the two leaders were scheduled to speak again last month, but it ultimately did not happen.
Meanwhile, Chinese President Xi Jinping has been struggling to cope with persistent sluggish consumption, a real estate crisis, and unemployment. China has pledged to inject billions of dollars into its weak economy, and Chinese leaders announced the plan at the National People's Congress. The National People's Congress is a rubber-stamp parliament that is responsible for passing matters decided behind closed doors. China has the world's second-largest military budget, at $245 billion, but it is far smaller than that of the United States. According to the Stockholm International Peace Research Institute, China's military spending accounts for 1.6% of its GDP, far lower than that of the U.S. or Russia. However, analysts believe that China underestimates its defense spending.