Saturday

04-19-2025 Vol 1935

Xi Jinping’s Defiant Stance Amid Escalating US-China Trade War

In his first public comments regarding the escalating trade war with the United States, Chinese leader Xi Jinping asserted that his nation is “not afraid,” as Beijing raised tariffs on U.S. goods to a staggering 125%.

This tariff hike marks the latest move in a tit-for-tat battle between the world’s two largest economies, following U.S. President Trump’s decision to elevate tariffs on China to 145%.

China has indicated, however, that it does not plan to raise tariffs beyond the 125% mark, arguing that any further escalation would be meaningless.

A spokesperson for China’s Commerce Ministry stated on Friday, “The successive imposition of excessively high tariffs on China by the US has become nothing more than a numbers game, with no real economic significance.”

The spokesperson added, “It merely further exposes the US practice of weaponizing tariffs as a tool of bullying and coercion, turning itself into a joke.”

The ongoing trade conflict between these economic superpowers has had a detrimental impact on international markets and has heightened fears of a global recession.

While other nations scrambled to negotiate with Trump, China has maintained a strong stance against what it has labeled “unilateral bullying” from the United States.

Before announcing the new tariff levies, Xi spoke to Spanish Prime Minister Pedro Sanchez in Beijing, stating, “There are no winners in a trade war, and going against the world will only lead to self-isolation.”

He emphasized, “For over 70 years, China’s development has relied on self-reliance and hard work — never on handouts from others, and it is not afraid of any unjust suppression.”

This marked Xi’s first public remarks on the tariff war, reflecting a defiant tone consistent with the messages of strength and resilience already circulated by Chinese officials and state media.

“Regardless of how the external environment changes, China will remain confident, stay focused, and concentrate on managing its own affairs well,” he added.

On Wednesday, Trump announced a temporary 90-day pause on tariffs for the rest of the world, with China being the notable exception.

Beijing seemed to take credit for this decision, stating, “We have noticed that, under pressure from China and other parties, the US has temporarily postponed the imposition of high reciprocal tariffs on certain trading partners.”

However, the Commerce Ministry spokesperson noted, “This is merely a symbolic and minor step, but it does not change the fundamental nature of the US’s use of trade coercion to pursue its own interests.”

While China has articulated its intent to avoid further tariff hikes, it has various other strategies at its disposal.

Chinese commentators with ties to the government have suggested potential countermeasures, including suspending cooperation on fentanyl, banning the import of U.S. poultry, limiting market access for legal consultancies, and investigating American companies’ earnings from intellectual property in China.

“If the US persists in substantively harming China’s interests, China will resolutely take countermeasures and fight to the end,” warned the spokesperson from the Commerce Ministry.

Prior to the latest tariff increase on Friday, Beijing announced restrictions on Hollywood films and had already imposed its own tariffs on the U.S. as high as 84%, along with limiting some American businesses from operating in China.

These unprecedented tariffs jeopardize trade between the two largest economies and threaten to further damage relations across other sectors, with no clear resolution in sight.

CNN reported on Thursday that Trump is awaiting communication from Xi and has insisted that the U.S. will not initiate contact; however, Beijing has consistently declined to set up a call between the two leaders.

Instead of reaching out to Trump for negotiations, Xi has embarked on an extensive diplomatic campaign, meeting other trade partners to combat the escalating trade conflict.

His meeting with Sanchez was the first of several planned engagements in Southeast Asia next week – a region that has been significantly impacted by Trump’s tariffs prior to their temporary halt.

According to China’s Foreign Ministry, Xi will visit Vietnam, Malaysia, and Cambodia, marking his first international trip of the year.

The timing of these high-level meetings, occurring shortly after both nations imposed record-high tariffs on one another, underscores Xi’s determination to project that China will not back down.

Xi aims to leverage the instability triggered by Trump’s tariff changes to strengthen ties with countries across Asia and Europe, positioning China as a dependable ally and staunch defender of global trade.

Sanchez is expected to be followed by a series of European leaders visiting China amidst the global economic turbulence stirred by Trump’s policies.

During their meeting, Xi told Sanchez, “The world is undergoing accelerated changes unseen in a century.”

He further noted, “The more complex and volatile the international landscape becomes, the more important it is to maintain sound and stable relations between China and Spain,” pledging to collaborate on areas such as new energy, high-tech manufacturing, and smart cities.

Xi also extended a conciliatory gesture towards the European Union, labeling it “an important pole in a multipolar world” and emphasized China’s long-standing support for the bloc.

In a subtle critique of the United States, Xi urged China and the EU, which together represent over one-third of the global economy, to join forces in defending international rules and order.

He stated, “China and the EU should fulfill their international responsibilities, jointly uphold the trend of economic globalization and the global trade environment, and work together to oppose unilateral bullying,” reiterating a phrase frequently used in response to U.S. tariffs.

Strengthening strategic partnerships with neighboring countries is a top priority for China’s diplomatic strategy.

Countries like Vietnam and Cambodia have faced significant consequences from Trump’s tariffs — set at 46% and 49%, respectively, before the pausing of tariffs.

In recent years, both nations have experienced increased investment from Chinese and international firms relocating supply chains to benefit from lower labor costs and to mitigate risks associated with U.S. levies.

This week, Xi emphasized the need for China to cultivate a “shared future with neighboring countries” during a high-profile Communist Party conference on foreign diplomacy.

An official release from the two-day meeting advocated for enhanced cooperation on industrial and supply chains with surrounding Asian nations.

The statement proclaimed, “China’s relations with its neighbors were at their best since modern times, while also entering a critical phase in which regional dynamics and global changes are becoming deeply interconnected.”

However, China’s relationships with European and Asian countries have faced challenges in recent years, particularly as Western-aligned nations have followed the U.S. in limiting China’s access to critical technologies.

Additionally, Beijing’s close ties to Moscow have strained these relationships further.

Since Trump’s re-election, China has expressed a desire to repair its relationships with various nations. In recent weeks, Chinese officials have engaged in dialogues with counterparts from South Korea, Japan, and several European countries, aiming to bolster trade alliances and gain favor with U.S. allies frustrated by the volatile trade war.

Nevertheless, China’s trade partners may approach Beijing’s gestures cautiously.

Many countries remain hesitant to be inundated with inexpensive Chinese goods and are also aware of Beijing’s track record of leveraging access to its extensive market as a strategy to exert political pressure.

Overall, the landscape remains tense as both superpowers navigate the complexities of international trade relations in a rapidly evolving global economic environment.

image source from:https://www.cnn.com/2025/04/11/business/china-xi-jinping-first-comment-trade-war-us-intl-hnk/index.html

Charlotte Hayes