China Rejects US Tariffs, Warns of Trade War Risks and Economic Impact

China has strongly criticized the latest U.S. tariff increases, stating that its economy remains stable despite growing trade pressures. Commerce Minister Wang Wentao emphasized that China will not yield to external pressure and warned that trade conflicts harm both sides.

Speaking at China’s national congress, Wang reaffirmed the country’s commitment to open trade but made it clear that China will defend its economic interests. He highlighted China’s role as a major trading partner for over 140 countries, stressing that the country has the ability to adapt to shifting global trade conditions.

China to Respond to US Tariffs While Keeping Negotiations Open

The U.S. administration has increased tariffs on Chinese imports multiple times, leading China to introduce countermeasures on American goods. Wang stated that China will continue to protect its trade interests and expects fair treatment in global trade discussions.

“China will not be pressured or threatened. If the U.S. continues this approach, we will take necessary actions to defend our interests,” Wang said.

At the same time, he noted that China remains open to discussions. “Our teams are ready to communicate whenever necessary to find solutions,” he added.

Wang also dismissed accusations that China is responsible for the U.S. fentanyl crisis, which Washington has cited as a reason for raising tariffs on all Chinese imports. He pointed out that China continues to strengthen global trade relationships and is working on additional free trade agreements beyond the 30 already in place.

To support businesses affected by trade restrictions, China is promoting international trade fairs, increasing financial assistance for exporters, and expanding opportunities in e-commerce and service industries.

China Introduces Economic Plans to Support Growth

China’s economy faces challenges, including a struggling housing market, weak stock performance, and job losses following the pandemic. Economic growth projections for 2025 are expected to range between 4.6% and 4.8%, slightly lower than the government’s 5% target.

To support economic activity, officials are preparing policies to increase consumer spending and business investment. While specific details have not been released, the government has committed to additional funding for education, healthcare, social security, and infrastructure projects.

Finance Minister Lan Fo-an assured that financial support would be provided to local governments facing debt concerns. “We will ensure that funds are used effectively to strengthen the economy and improve public services,” he said.

China Focuses on Long-Term Economic Stability

China’s leadership continues to focus on maintaining a stable economy while responding to global trade challenges. Government policies aim to provide businesses with new opportunities in international markets and strengthen domestic industries.

While tensions with the U.S. persist, China has made it clear that it will take necessary actions to protect its economic interests while remaining open to trade negotiations that are fair and based on mutual respect.

Also Read: U.S. Tariffs on China—Bessent Pressures Canada & Mexico to Follow Suit