‘If US wants war, we are ready’: China

Tensions between the world’s two largest economies have escalated, with Washington imposing new tariffs on all Chinese goods. In response, Beijing swiftly introduced counter-tariffs of 10-15% on American agricultural products.

The Chinese embassy in Washington took to social media platform X to deliver a firm message: "If war is what the US wants, be it a tariff war, a trade war or any other type of war, we're ready to fight till the end."

This rhetoric is among the strongest from China since Trump took office, coinciding with the annual National People's Congress (NPC) in Beijing.

Military Spending Increase

China’s Premier Li Qiang announced on Wednesday that the country would increase its defence budget by 7.2% this year, the same figure as the previous year. He cautioned that "changes unseen in a century were unfolding across the world at a faster pace."

The move signals Beijing’s efforts to assure its people that China’s economy can withstand the impact of a trade war. Officials are keen to project an image of stability and peace, contrasting it with the US, which Beijing accuses of involvement in conflicts in the Middle East and Ukraine.

Strategic Considerations

Despite the tough rhetoric, China appears to be treading carefully. Beijing is mindful of Trump’s trade policies, which have also affected US allies such as Canada and Mexico. By not escalating tensions too far, China could be seeking to strengthen ties with other global partners.

In his NPC address, Premier Li emphasised China’s commitment to opening up its economy and attracting foreign investment.

While China has previously called for military preparedness, including President Xi Jinping’s directive last October for troops to be combat-ready during Taiwan military drills, this does not necessarily indicate a willingness to go to war.

US-China Relations at a Crossroads

The Chinese embassy in Washington's post also quoted a foreign ministry statement rejecting US accusations regarding fentanyl trafficking. "The fentanyl issue is a flimsy excuse to raise US tariffs on Chinese imports," a ministry spokesperson said.

"Intimidation does not scare us. Bullying does not work on us. Pressuring, coercion or threats are not the right way of dealing with China," he added.

The increasingly fraught US-China relationship remains one of the most critical geopolitical flashpoints. The embassy’s statement has gained widespread attention, potentially reinforcing the stance of China hawks in Trump’s administration who view Beijing as Washington’s foremost economic and security challenge.

Initially, Beijing had hoped for a more cooperative relationship under Trump. The two leaders had engaged in cordial discussions, with Trump inviting President Xi to his inauguration and later describing a "great phone call" before taking office. However, a scheduled follow-up call last month failed to materialise.

Economic Challenges for Beijing

Xi Jinping’s administration is already contending with multiple domestic challenges, including sluggish consumer spending, a property crisis, and rising unemployment. In response, China has pledged to inject billions of dollars into its faltering economy. These measures were outlined during the NPC, a legislative gathering where policies are formally approved.

China’s military budget, the second-largest in the world, stands at $245 billion—significantly lower than that of the US. While Beijing allocates 1.6% of its GDP to defence, considerably less than the US or Russia, analysts suggest that China may underreport its actual military spending.

As tensions rise, the coming months will be critical in determining whether economic disputes between the two nations spiral further or if diplomatic efforts can ease the conflict, reports UNB.