China is More Prepared to Face Trump's War Drums

WASHINGTON, SUNDAY - Compared to Canada and Mexico, China is more prepared to face the new trade war launched by United States President Donald Trump. Instead of negotiating, China has prepared a strategy to retaliate.

China will impose a 15 percent tariff on various US agricultural and livestock products. Starting Monday (10/3/2025), the tariff will apply to soybeans and meat, including pork, beef and chicken. In 2024, China imported a total of US$24.7 billion in US agricultural and livestock products.

Beijing also added 10 US companies to its list of untrustworthy companies. All Chinese companies or those operating in China are banned from exporting and importing with the 10 companies.

In addition, there are export restrictions on 15 US companies. China considers the 15 companies to be harmful to China's national interests.

Previously, Monday (3/3/2025) evening Washington DC time or Tuesday (4/3) early morning WIB, US President Donald Trump confirmed that import tariffs on goods from Canada, Mexico, and China would come into effect. The US imposed a 25 percent import tariff on Canada and Mexico. China was also hit with additional import duties from 10 percent to a total of 20 percent.

Following Trump's announcement, Canadian and Mexican leaders reacted immediately. They held phone talks with Trump.

As a result, Trump then postponed the implementation of the 25 percent tariff for Canada and Mexico. On Friday (7/3/2025) Trump stated that he was postponing the implementation of tariffs for Canada and Mexico until April 2, 2025.

Meanwhile, China is not like that. China chooses to remain calm in the face of Trump's statement. Beijing believes that if negotiating with the US, then every negotiation must be done on an equal footing.

China chose to remain silent and immediately took action. China prepared a response to Trump's additional 20 percent import duties.

“When Washington raises tariffs, Beijing sees no choice but to retaliate,” said Sun Yun, director of the China Program at the Stimson Center, a Washington-based think tank.

China’s tariff retaliation echoed a sharp response from the Chinese Foreign Ministry last week. “If war is what the US wants, be it a tariff war, a trade war or any other kind of war, we are ready to fight to the end,” said Lin Jian, a spokesman for the Chinese Foreign Ministry.

Analysts say China's response today is similar to what it did when facing Trump's first trade war. In 2018, when Trump launched his first trade war with China, China also took retaliatory measures.

Beijing has also implemented a series of tariffs, import restrictions, export controls, sanctions, regulatory reviews, and business restrictions on U.S. companies, all designed to create hardship for the U.S. economy and businesses in response to Trump's tariffs.

According to observers, from the steps taken by Beijing today, China is not yet willing to open up space to negotiate with the US. "Xi Jinping has decided that it is not time to talk to Trump," said Daniel Russel, Vice President for International Security and Diplomacy at the Asia Society Policy Institute, referring to the Chinese President.

According to Russel, Xi would not want to call Trump if he could be insulted or humiliated. "For political and strategic reasons, Xi would not want to beg (the US)," Russel explained.

At his annual press conference on Friday (7/3/2025), Chinese Foreign Minister Wang Yi also emphasized, "no country should fantasize that they can suppress, contain China while developing good relations with China."

“Such two-faced actions are not only bad for the stability of bilateral relations but also will not build mutual trust,” Wang said.

He added that China welcomes cooperation with the US. But he stressed that if the US continues to pressure, China will respond firmly.

Scott Kennedy, the China Business and Economics Trustee at the Washington-based Center for Strategic and International Studies, said China's moves this time show it was not psychologically surprised by Trump's move. Learning from 2018, China had anticipated it.

China's economy is slowing but still growing at an annual pace of nearly 5 percent. Under Xi's leadership, China is investing heavily in advanced technology, education and other areas.

China also developed and has stronger trade relations with many other countries than during Trump's first term. Trade cooperation with many countries has allowed China to get key products, other than from the US. For example, China buys most of its soybeans from Brazil and Argentina, not from the US.

Ultimately, Kennedy said, the percentage of Chinese goods sold to the U.S. is down. “They (China) are better prepared for shocks than they were a few years ago,” Kennedy said.

Meanwhile, while Chinese exports to the US are down, more than 80 percent of Mexico's exports are to the US. Canada sends 75 percent of its exports to the US.

“China has learned from its previous relationship with Trump,” Russel said. (AP)