March 8, 2025 - 1:00pm

Donald Trump’s latest round of tariffs has provoked a defiant reaction from Beijing’s Foreign Affairs Spokesperson. “If war is what the US wants, be it a tariff war, a trade war or any other type of war,” Lin Jian said in a press conference this week, “we’re ready to fight till the end.”

This aggressive stance resonates with the “wolf warrior diplomacy” strategy that emerged during Trump’s first administration, a calculated shift in diplomatic tone designed to match the US President’s volatility. But beneath the surface, China’s militant rhetoric is not matched by its actions. Indeed, Beijing’s domestic priorities suggest that the country is not preparing for imminent military conflict. Instead, it is focusing on economic growth, highlighting a 5% target for 2025. As Premier Li Qiang stated this week, China needs to be ready for “changes unseen in a century […] unfolding across the world at a faster pace”.

Li also announced that Beijing would raise 500 billion yuan to recapitalise state banks, aiming to offset tariff impacts this year. This focus on growth suggests that China might be prioritising stability over war, but at the same time will not shy away from the trade dispute.

It’s also possible that the US is not gearing up for war either. This week Elbrige Colby, the nominee for Under Secretary of Defense for Policy, stated that, while the fall of Taiwan would be “a disaster”, the island is not an “existential” interest for the US. On the other hand, Colby mentioned that war with China was not inevitable, while Treasury Secretary Scott Bessent declared that Trump is confident Xi won’t invade the island during his presidency. Other signals, such as the potential common ground between America and China on issues including Ukraine, show there is a path for foreign policy that isn’t straightforwardly antagonistic..

During the Cold War, the Soviets coined the term “China’s final warning” to mock Beijing’s repeated but unenforced diplomatic threats, implying they lacked real consequences. Lin Jian’s recent statement could be seen as yet another iteration of these warnings. Yet in recent years China has been flexing its muscles, this year pledging a 7.2% increase in military spending. While war with the US does not seem to be China’s short-term goal, its very discussion is a concerning sign.

Beijing has been engaging in a trade war with Washington for almost eight years, meaning that it was more prepared for Trump’s return than America’s allies. However, mutual tariffs on all sectors mean both countries will likely suffer. A trade war is always a last-man-standing contest, in which extensive mutual harm is dealt out. The fact that Xi Jinping seems more open to introducing a stimulus shows an uncertainty in Beijing that they will be the ones left upright after an exchange of tariffs.

China is quite comfortable with a world in which strength is displayed openly, rather than concealed under nice words. Its diplomats are well aware that their country holds greater leverage over America than the likes of Mexico and Canada. Beijing is ready to meet strong words with even stronger ones, which may be the only approach to striking a deal  with the Trump administration. However, taking the step from rhetoric to action is another matter entirely.


Miquel Vila is a political consultant specialising in international affairs. He is also the executive director of the Catalonia Global Institute.

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