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The Trade War Between China and the USA Intensifies With New Tariffs and Threats. Beijing Responds to Trump’s Escalation. Check Out the Developments!
The relations between China and the United States reached a new level of tension on Wednesday (5), after the Chinese government declared itself prepared to face “any kind” of war in response to the rising trade tariffs imposed by American President Donald Trump.
The trade dispute between the two largest economies in the world intensifies and raises fears of a large-scale trade war.
The Trump administration expanded tariffs on Chinese products, affecting all goods entering the USA.
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Beijing reacted quickly, imposing tariffs of 10% to 15% on American agricultural products. The Chinese retaliation was accompanied by a strong diplomatic stance.
“If it is war that the USA wants, whether tariff, trade, or any other kind, we are ready to fight to the end,” stated the Chinese Embassy in Washington through its official account on X (formerly Twitter), reproducing a statement from the Chinese government.
Escalation of Tension and Increase in Military Spending
The Chinese statement comes at a crucial moment, as leaders gather in Beijing for the National People’s Congress, an annual event that sets political and economic guidelines for the country.
On Tuesday (4), Chinese Prime Minister Li Qiang announced a 7.2% increase in military spending, highlighting that the world is undergoing “unprecedented changes in a century.”
This budget growth reinforces China’s position amid external pressures, especially regarding relations with the USA.
Beijing has sought to project an image of stability and pacifism, contrasting with the American stance, which is often associated with military interventions in the Middle East and Ukraine.
However, China also needs to balance its rhetoric to avoid alienating global trade partners.
Fentanyl and Trade War: A New Point of Discord
Tension has also escalated with the recent accusation from the USA that China is responsible for the entry of fentanyl into American soil.
In response, the spokesperson for the Chinese Ministry of Foreign Affairs rebutted the allegations, classifying them as “a flimsy excuse” to justify the imposition of new tariffs.
“Intimidation does not scare us. Bullying does not work with us. Pressuring, coercing, or making threats is not the right way to deal with China,” declared the spokesperson.
The increasingly aggressive rhetoric between the two powers reinforces the perception that Beijing and Washington are on a collision course, not only in the trade arena but also in the diplomatic and strategic spheres.
Economic Impacts and the Chinese Strategy
In light of this uncertainty, China seeks to strengthen its economy, which faces challenges such as declining consumer spending, a crisis in the real estate sector, and rising unemployment.
The government has promised to inject billions of dollars to stimulate growth, and the National People’s Congress has been a platform for presenting ambitious economic plans.
Currently, China has the second-largest military budget in the world, with US$ 245 billion, still significantly lower than that of the USA.
Beijing allocates 1.6% of its GDP to the defense sector, a lower percentage than the military investments of Washington and Moscow, according to the Stockholm International Peace Research Institute.
Experts point out that China may underestimate its military spending to avoid alarming the international community while continuing to modernize its armed forces.
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