China Criticizes US Tariffs, Warns of Trade War Impact

China is resolute in the face of the mounting tariffs imposed by US President Donald Trump and other economic pressures, with the country’s Commerce Minister asserting that China will not bow to intimidation. However, he made it clear that “there are no winners in a trade war,” signaling the serious repercussions both nations could face if tensions continue to rise.

"If the US seeks a trade war, we are ready": China

Addressing the press at China’s annual National People's Congress, Commerce Minister Wang Wentao stood firm, reiterating Beijing’s call for dialogue despite the escalating tensions. He stressed that China’s position as a vital trade partner to 140 nations gives it a strong negotiating advantage, providing alternative avenues for its economic activities. While Wang and other officials detailed the country’s financial and economic plans, no major new policy changes were announced.

China’s Strong Stand Amid Escalating Tariffs

Since President Trump took office in January, the US has implemented multiple rounds of tariffs on Chinese imports, which have prompted retaliatory measures from China targeting American goods and businesses. Wang emphasized that China values mutual respect in international relations and remains resolute in protecting its interests.

“Coercion and threats will not work on China. We will not be intimidated, and we are steadfast in defending our sovereignty,” Wang declared, highlighting that trade wars ultimately harm both sides. “There are no winners in a trade war. If the US persists with this misguided approach, we will respond in kind and fight to the end.”

Despite this firm stance, Wang reiterated China's openness to dialogue, expressing willingness to engage in negotiations at an appropriate time. He also dismissed President Trump’s claims that China is responsible for America's ongoing fentanyl crisis, which was used as one of the justifications for imposing additional tariffs on Chinese imports.

China Diversifies Trade Partnerships

As the primary trading partner for 140 countries and regions, China continues to diversify its trade partnerships, having secured over 30 free trade agreements (FTAs). Wang noted that China is open to more such agreements, reinforcing its commitment to global trade networks beyond the United States.

“We are not dependent on any single market,” Wang emphasized, acknowledging the challenges faced by Chinese exporters. To support businesses, China is bolstering its export credit and pushing for greater international trade initiatives, including participation in trade fairs and an expanding focus on e-commerce and services.

China Sets Economic Growth Target at 'Around 5%' Amid Trade Tensions

Internally, China is grappling with economic challenges stemming from a sluggish housing market, weak stock performance, and lingering effects of the COVID-19 pandemic. With growth projections for 2025 falling between 4.6% and 4.8%, slightly below the government’s 5% target, officials are focusing on stimulating domestic consumption and business investment.

Zheng Shanjie, the head of China’s National Development and Reform Commission, revealed that plans are in the works to boost consumer spending and investment, though specific strategies were not disclosed. Meanwhile, Finance Minister Lan Fo-an emphasized increased spending on public welfare, including education, healthcare, and social security, with a focus on supporting local governments burdened with debt.

“We are committed to ensuring that every coin is spent efficiently,” Lan affirmed, adding that China’s economic policy leaves room for flexible implementation of these measures.