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China's patience with Donald Trump is running out - as trade war rhetoric ramps up

Wednesday, 5 March 2025 14:48

By Nicole Johnston, Asia correspondent

China's premier has warned "changes unseen in a century are unfolding across the world" as a trade war with the US intensifies.

Li Qiang was speaking in parliament - a day after Washington slapped another 10% tariff on Chinese goods.

Beijing has responded with 10% to 15% tariffs on US food and agricultural products.

"Global economic growth lacks steam, unilateralism and protectionism are on the rise... the multilateral trading system is experiencing disruptions and tariff barriers continue to increase," Premier Li added.

The Chinese Embassy in the US has also dialled up the pressure, writing on X: "If war is what the US wants, be it tariff war, a trade war or any other type of war, we're ready to fight till the end."

This statement was first made by China's ministry of foreign affairs on Tuesday. The fact that China has repeated it two days in a row is significant.

It is a pointed message to the US that China's patience is running out - and its rhetoric about the tit-for-tat tariffs is growing harsher. It has called the tariff war "pressure", "blackmail", a "smear campaign" and "shifting the blame".

But Mr Trump loves imposing tariffs on China and appears convinced the pressure will work. He blames China for exporting the chemical precursors used to make fentanyl, which has fuelled the US opioid epidemic.

Meanwhile, China is facing severe economic challenges at home, with the country setting a growth target of "about 5%" for this year.

The government's work report said a major task this year is to boost consumption and domestic demand.

Money blog: Dollar sinks and market gains wiped out

The problem in China is people aren't spending enough money, instead they are cautiously saving. One reason for this is the weakness of China's social welfare system. People save their money in case they lose their job, or to pay for health and elderly care.

The government says it wants to make domestic demand the engine of growth by turning several cities into "international consumption centres" - and expanding its trade-in system to encourage people to buy new products for the home.

Shopping aside, thousands of delegates from provinces across China attended including high-profile figures like former basketball star Yao Ming, and Lei Jun, who co-founded the electric vehicle manufacturing company Xiaomi.

After the session, delegates streamed into the square outside the Great Hall of the People. It is a chance to get their thoughts on the country's future.

Congress delegate Liu Hui said: "I think tariffs will have little impact on China because we treat others the way they treat us."

Another delegate from Shaanxi province, Song Yaping, is proud of China's hi-tech prowess and said: "Our technology develops so fast, just look at DeepSeek, look at how fast our AI develops."

Read more:
How Trump's tariffs could cost consumers here
Analysis: The US may now be in a recession

Despite the confidence, the trade war is deepening.

In the factory heartland of Guangzhou in southern China, a glassware exporter is bracing for the impact of the latest Trump tariffs.

Marketing manager Anna said: "I think the people will discuss these tariffs and of course 10% is a huge number. Some companies can't make a profit from this.

"But we can't change it. We just have to get used to it and let it be."

Still, letting it be is not easy in a world where it feels like everything is changing fast.

Sky News

(c) Sky News 2025: China's patience with Donald Trump is running out - as trade war rhetoric ramps up

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