Beijing: China has vowed to fight the escalating trade war with the United States "to the end", as Washington’s latest tariffs threaten to disrupt the global economy and further strain Beijing’s slowing growth.
The warning comes as US President Donald Trump imposed new tariffs on Chinese imports this week, intensifying trade tensions between the world’s two largest economies. The move follows a similar tariff hike last month, with levies expected to impact hundreds of billions of dollars in total trade.
China Stands Firm Against US Tariffs
Addressing the escalating trade confrontation, China’s Commerce Minister Wang Wentao condemned the US measures, accusing Washington of "unilateralism and bullying."
"If the United States continues down this wrong path, we will fight to the end," Wang told reporters on Thursday.
He warned that the new tariffs risk "disrupting the stability of the global industrial supply chain and hindering global economic development."
Beijing Targets Domestic Growth Amid Trade Challenges
Despite the economic strain, Beijing remains confident in achieving its annual growth target of around 5%, a goal outlined during China’s "Two Sessions" political meetings this week.
Zheng Shanjie, chairman of China’s top economic planning body, acknowledged growing uncertainties in the global economic environment but insisted that China has "full confidence" in meeting its targets.
"We have the basic support and guarantee to achieve this year’s growth target of around five percent," Zheng stated.
However, he admitted that China faces "insufficient domestic demand, production difficulties in certain industries, and business operation challenges." Despite these obstacles, he emphasized that the government is prepared to tackle these issues effectively.
China Expands Fiscal and Monetary Support
To counter economic headwinds, China’s central bank chief Pan Gongsheng signaled that interest rates could be further cut in 2025 to stimulate domestic demand.
"We will cut interest rates further this year as appropriate, based on domestic and international economic and financial situations," Pan said on Thursday.
China’s Finance Minister Lan Fo’an also pledged to expand fiscal spending this year, reinforcing government efforts to sustain economic growth.
"We will further expand fiscal spending in 2025 to promote the sustainable and healthy development of the economy and society," Lan announced.
China Retaliates With Tariffs on US Goods
In response to Washington’s latest tariff escalation, Beijing has introduced retaliatory levies of up to 15% on a range of US agricultural products, including soybeans, pork, and wheat. These measures will take effect early next week, targeting key sectors of the American agricultural industry.
The trade war has added pressure to China’s struggling economy, which has faced persistent challenges since the Covid-19 pandemic, including sluggish domestic consumption and a prolonged property sector crisis.
While Beijing remains committed to boosting domestic demand as its main economic driver, the deepening rift with Washington threatens to further strain the already fragile global trade landscape.
