China says it is “ready for war” with America as it raises defence spending and imposes retaliatory tariffs on US imports.
In a direct threat to Donald Trump, China’s representatives in America said: “If war is what the US wants, be it a tariff war, a trade war or any other type of war, we’re ready to fight until the end.”
The US has hit China with 20% tariffs in response to what the White House considers to be Chinese inaction over the flow of fentanyl, a synthetic opioid, into America.
Beijing has responded by announcing plans to boost defence spending by 7.2% and hit the US with reciprocal tariffs of 10 to 15% on certain imports from March 10.
In combative statements online, China’s Ministry of Foreign Affairs and US embassy warned Washington that “intimidation does not scare us” and criticised Trump for linking tariffs to the fentanyl crisis.
The fiery language comes as China’s top legislature met in Beijing, where the plans to boost defence spending were revealed.
The rise in spending is equal to the jump last year and takes the official budget to roughly 1.78 trillion yuan (NZ$430 billion), as China pursues the goal of Xi Jinping, its President, to build a modern military by 2027.
This week, Li Qiang, China’s Premier, vowed there would be “all out efforts” to hit the target in his annual address to the legislature.
He said Beijing “will step up military training and combat readiness so as to firmly safeguard China’s sovereignty, security and development interests”.
China has stoked alarm with increasingly aggressive moves in Asia and the Pacific – including recent live-fire drills off the Australian coast, military exercises close to Taiwan and Vietnam and confrontations with the Philippine coastguard in the South China Sea. Japan, South Korea and India have all criticised the projections of military might.
Earlier this week, it was revealed that China is developing a new nuclear-powered aircraft carrier, which would be larger and more advanced than any vessel in its fleet, in an attempt to rival the US.
Although Beijing has the second-largest military budget in the world, it remains dwarfed by American spending – even accounting for Trump’s plans to cut the US budget by 8% over the next five years.
The US military budget for 2025 stands at around US$850b (NZ$1.5t). Although the Pentagon says China spends more than it publicly declares – up to US$450b (NZ$790b) when items listed in other budgets are included.
Analysts have said that, despite the strong rhetoric, China is not yet actively gearing up for war. Its strong language was triggered by the Trump administration’s tariffs, which also hit Mexico and Canada.
Li was bullish about the possible economic hit during his address this week, setting out a 5% growth goal for the third year straight. Yet China is facing difficult economic headwinds at home, while the US tariffs could hit the superpower’s critical export industry hard.
Beijing has lodged complaints at the World Trade Organisation but also responded to the US with additional tariffs, plus new export restrictions for designated American entities.
In the posts on X, the Ministry of Foreign Affairs hit out at Trump for linking the trade war to the fentanyl crisis, saying: “The fentanyl issue is a flimsy excuse to raise US tariffs on Chinese imports. Our counter-measures to defend our rights and interests are fully legitimate and necessary.
“Intimidation does not scare us. Bullying does not work on us. Pressuring, coercion or threats are not the right way of dealing with China.”
Professor James Char Tze Siang, an assistant professor in the China programme at the S Rajaratnam School of International Studies in Singapore, said the statements are in keeping with combative “wolf warrior” diplomacy previously deployed by Beijing.
He said: “It is usual for the CCP [Chinese Communist Party] government to talk tough against what it perceives as attempts by foreign countries to put pressure on Beijing to stop its rise or influence its policies. This is but another episode in the fluctuating Sino-US relationship since their rapprochement in 1972.”
Philip Shetler‑Jones, a senior research fellow in Indo-Pacific Security at the Royal United Services Institute, said: “The language is not that new, but the context is. In this instance, the tweet seems to be in the context of tariffs, so I don’t find it particularly alarming.”
However, he added: “Maybe the change in tone reveals a concern on the China side that Trump is normalising the Russia relationship to clear the deck in preparation for really focusing all his attention on the competition with China.”