BANGKOK — China reaffirmed its determination to “fight to the end” on Wednesday as tensions with the United States further intensified in an ongoing trade dispute. In a recently announced move, Beijing will be hiking tariffs on U.S. goods to 84% starting Thursday.
In addition, China introduced a series of countermeasures following U.S. President Donald Trump’s decision to increase total tariffs on Chinese imports to 104%. Beijing has revealed plans to file a new complaint against the U.S. at the World Trade Organization and is set to impose additional bans on American companies trading with Chinese firms.
“If the U.S. continues to implement more severe economic and trade restrictions, China is ready with a firm determination and numerous tools at its disposal to take indispensable counteractions and fight to the end,” the Ministry of Commerce expressed in a statement coinciding with the release of its white paper on trade relations with the U.S.
The Chinese government refrained from confirming whether it is open to negotiations with the U.S. administration, a stance several other nations are starting to adopt.
Last Friday, China declared a 34% tariff on all American imports, coupled with export controls on rare earth minerals and various other retaliatory measures in reaction to Trump’s “Liberation Day” tariffs. In response, Trump escalated the situation with an additional 50% tariff on Chinese goods and declared a halt to negotiations.
Wednesday’s latest measures include placing 11 U.S. companies on an “unreliable entities” list that prevents Chinese businesses from selling them dual-use goods. The list includes firms like American Photonics and SYNEXXUS, both of which have ties with the U.S. military.
China has shown little inclination toward bargaining. “If the U.S. truly wants to resolve issues through dialogue and negotiation, it should adopt an approach of equality, respect, and mutual benefit,” Ministry of Foreign Affairs spokesman Lin Jian said on Wednesday.
The recently released document claims that the U.S. has failed to uphold commitments made in the phase 1 trade deal that was settled during Trump’s first term. A case in point is a U.S. law proposing a ban on TikTok unless it’s sold by its Chinese parent company, which the document argues breaches a commitment that neither country would exert pressure to transfer technology to its citizens.
Last week, President Trump signed an order to extend TikTok’s operations for another 75 days, given that a deal to sell the app to American buyers was delayed. Representatives from ByteDance reportedly contacted the White House, signaling China’s reluctance to approve the deal until discussions over trade and tariffs could be arranged.
The document also states that when factoring in service trade and U.S. company branches within China, economic exchanges between the two nations are “roughly in balance.”
It points out that in 2023, China faced a trade in services deficit with the U.S., amounting to $26.57 billion, mainly in sectors such as insurance, banking, and accounting. Trump’s tariffs aimed to minimize trade deficits with foreign countries, though these were calculated solely on the trade of physical, tangible commodities.
“History and facts have demonstrated that the U.S. increase in tariffs will not resolve its domestic issues,” said the statement from the Chinese commerce ministry. “On the contrary, it will result in substantial market fluctuations, heightened U.S. inflation pressures, weakened industrial foundations, and increased risk of economic recession, culminating in detrimental effects for itself.”