China warns US it is ready for ‘any type of war’ as trade tensions escalate

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China has issued one of its strongest warnings yet to the United States, declaring it is ready to fight "any type of war" as tensions escalate over trade. The sharp rhetoric comes after President Donald Trump imposed higher tariffs on all Chinese goods, prompting swift retaliation from Beijing, which placed 10-15% tariffs on US farm products.

"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," China's embassy in Washington posted on X, citing a government statement.

The exchange marks another flashpoint in the already strained relationship between the world’s two largest economies. The statement came as China’s leaders gathered for the annual National People’s Congress, where Premier Li Qiang emphasized economic resilience and reaffirmed China's commitment to attracting foreign investment.

How is China responding to US tariffs?

By the numbers:

  • China has imposed 10-15% tariffs on US agricultural products in response to Trump’s trade measures.
  • Premier Li Qiang announced a 7.2% increase in defense spending, keeping pace with last year’s increase.
  • China’s military budget stands at $245 billion, making it the second largest in the world but far smaller than the US.
  • Beijing allocates 1.6% of GDP to defense, significantly lower than the US or Russia, according to the Stockholm International Peace Research Institute.

Despite the tough rhetoric, China has signaled it wants to maintain economic stability. Officials have avoided escalating tensions too far, instead portraying the US as embroiled in conflicts while China presents itself as a more stable global force.

Why is China escalating its rhetoric?

The backstory:

The US-China trade dispute is just one aspect of a broader geopolitical struggle. Trump’s tariffs mark the latest escalation, but Beijing’s defiant response aligns with its ongoing push to project strength on the global stage.

China has frequently emphasized military readiness, with President Xi Jinping calling for increased preparedness during drills near Taiwan last October. However, there remains a difference between posturing and actual readiness for conflict.

President Donald Trump and Chinese President Xi Jinping during a welcoming ceremony in Beijing on Nov. 9, 2017. (Photo by Thomas Peter-Pool/Getty Images)

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The trade tensions have also been tied to US-China disputes over fentanyl. The Chinese foreign ministry dismissed US accusations, calling them a "flimsy excuse" for tariffs. "Intimidation does not scare us. Bullying does not work on us," a spokesperson said.

How could this impact global stability?

What's next:

US-China relations remain unpredictable. Trump initially sought a more cooperative relationship with Xi Jinping, but tensions have worsened. A planned phone call between the two leaders reportedly fell through last month.

Meanwhile, China is grappling with an economic slowdown, a property crisis, and rising unemployment. Beijing has pledged billions to stabilize growth as leaders gather for the National People’s Congress.

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Despite its calls for stability, analysts believe China understates its military spending and could be preparing for a more assertive global role. With trade tensions escalating, the risk of deeper economic and diplomatic conflict remains high.

The Source: This report is based on statements from China’s embassy in Washington, remarks from Premier Li Qiang at the National People’s Congress, and reporting from The Associated Press on US-China trade relations and defense spending.

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