BEIJING: The Chinese Embassy in the United States on Wednesday said that Beijing is “ready to fight till the end” in its ongoing trade war with Washington, following fresh tariff hikes imposed by the US government.
In a statement posted on social media platform X, the embassy strongly criticised the latest round of US tariffs, which are set to target billions of dollars’ worth of Chinese imports.
“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,” the statement read.
If the U.S. truly wants to solve the #fentanyl issue, then the right thing to do is to consult with China by treating each other as equals.
If war is what the U.S. wants, be it a tariff war, a trade war or any other type of war, we’re ready to fight till the end. https://t.co/crPhO02fFE
— Chinese Embassy in US (@ChineseEmbinUS) March 5, 2025
The post also quoted a remark from Chinese foreign ministry spokesperson Lin Jian, who dismissed the US justification for the tariff increase—citing China’s alleged role in fentanyl production—as “a flimsy excuse.”
The spokesperson further asserted that Beijing’s countermeasures to defend its economic interests were “fully legitimate and necessary.”
US escalation and China’s retaliation
Earlier this month, the Trump administration announced a 10 per cent tariff on all imports from China, in addition to existing duties.
The White House cited the fentanyl crisis in the US as a key factor behind the decision, arguing that Beijing has not done enough to curb the illicit production and trafficking of the powerful synthetic opioid.
In response, Beijing announced its own retaliatory measures on Tuesday, vowing to impose tariffs of up to 15 per cent on a range of US agricultural exports, including soybeans, pork, and wheat. These duties are expected to take effect early next week.
China’s countermeasures represent a measured response compared to Washington’s sweeping tariff hikes, according to Lynn Song, chief economist for Greater China at ING.
“The retaliation could have been a lot stronger, and with every further escalation, the risks are also rising for a stronger response,” Song noted in a research report.
China’s ambitious growth target
Despite the intensifying trade war, Beijing has set an ambitious economic growth target of around five per cent for the year, Premier Li Qiang announced at the National People’s Congress (NPC).
The government is placing greater emphasis on boosting domestic demand as an economic driver, following a decline in exports due to US trade restrictions.
In an unusual move, Li also confirmed that China’s fiscal deficit will rise to four per cent of gross domestic product (GDP) this year, up from previous levels.
Analysts suggest this increase will allow Beijing more flexibility in addressing economic challenges, including youth unemployment, sluggish consumer spending, and a property sector crisis.
“China should move faster to address inadequate domestic demand, particularly insufficient consumption,” stated a government work report presented at the NPC.
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The report also outlined plans to create 12 million new urban jobs and maintain an inflation target of two per cent for the year.
Defence spending
Alongside its economic measures, China announced a 7.2 per cent increase in defence spending for 2025, underscoring its commitment to modernising its armed forces amid rising regional tensions and strategic competition with the United States.
The announcement was made at the annual gathering of the NPC, held in Beijing’s Great Hall of the People.
The NPC, China’s top legislative body, is one of the “Two Sessions” political meetings that set key economic and policy priorities for the country each year.
