China Signals Firm Stance amid New U.S. Tariff Threats
- Olga Nesterova
- 40 minutes ago
- 4 min read
A recent tweet by the Chinese Embassy in Washington lays bare Beijing’s sharply defined posture in the ongoing U.S.-China trade standoff:
“China’s position on the Trade War is consistent: we do not want it, but we are not afraid of it. Since the China-#US economic and trade talks in Madrid in September, the U.S., in just 20 days, has introduced a string of new restrictive measures targeting China. (…) China urges the U.S. to promptly correct its wrong practices. If the U.S. insists on going the wrong way, China will surely take resolute measures to protect its legitimate rights and interests.”
The message underscores what Beijing sees as a consistent line: it does not seek a trade war, but it claims readiness to respond forcefully if pushed.
Escalating U.S. Measures Since Madrid
The embassy’s tweet refers to a flurry of new actions the U.S. has pursued a in a short span:
Placing multiple Chinese entities on the Entity List and Special Designated National List
Broadening the Affiliates Rule, thereby extending export-control and sanctions oversight to affiliated Chinese firms
Persisting with Section 301 measures, particularly targeting China’s maritime, shipbuilding, and logistics sectors
These steps, Beijing argues, harm China’s interests and chill the climate for dialogue.
In parallel, China’s more aggressive tone on social media is echoed elsewhere: the embassy has posted that “if war is what the U.S. wants, be it a tariff war, a trade war or any other type of war, we’re ready to fight till the end.”
Trump’s New 100% Tariff Threat
The Chinese embassy’s warning takes on heightened significance in light of President Donald Trump’s recent announcement. On October 10, 2025, Trump declared via Truth Social that the U.S. would impose an additional 100% tariff on Chinese imports starting November 1 (or sooner) — stacking the new duty on top of existing tariffs. He also pledged to enforce export controls on “any and all critical software” as part of a sweeping escalation.
Under the current regime, many Chinese imports already face tariffs in the 25–30 percent range. Trump framed his move as a response to what he called China’s “extraordinarily aggressive” export curbs on rare earths — and labeled Beijing’s behavior a “moral disgrace.”
Chinese officials have criticized the new tariffs as hypocritical and a sign of double standards. A spokesperson for China’s Ministry of Commerce accused the U.S. of ratcheting up restrictions while undermining the atmosphere for economic dialogue.
Meanwhile, Beijing has defended its export controls on rare earths as legitimate and necessary for national security amid global pressures.
What It All Means: Risks, Retaliation & Negotiation
China’s “not afraid” message is double-edged. On the one hand, it signals resolve and a refusal to be cowed by U.S. pressure. On the other hand, it raises stakes in a confrontation that could spiral beyond trade into geopolitical domains.
Beijing’s promise of “resolute measures” implies that China may retaliate — whether via counter-tariffs, export controls, or other non-tariff barriers.
Indeed, Chinese officials and state media have already floated such responses, including import curbs on U.S. agricultural products, export license restrictions, and investigations into American tech firms.
At the same time, China continues to appeal to negotiation. China’s ambassador to the U.S., Xie Feng, has urged for de-escalation and constructive engagement, warning that extended tariff conflict would cause mutual damage.
The irony, from Beijing’s vantage, is that the very measures the U.S. introduces to force China’s hand may undermine the possibility of substantive dialogue — thus leading to a self-reinforcing cycle of retaliation.
Beijing Tightens Rare-Earth Controls — and the Global Impact
While the U.S. escalates tariffs, China has moved to restrict the flow of critical materials used in chipmaking.
According toThe Financial Times, Beijing’s new rules require export licenses for any products that contain Chinese-sourced rare earths or that were produced using Chinese extraction or refining methods— even if the finished goods are made abroad.
This means the regulations could affect global chipmakers such as Taiwan Semiconductor Manufacturing Company (TSMC), Samsung, and SK Hynix, all of which rely on materials or components tied to China’s supply chain.
In practice, this means semiconductor producers now need Beijing’s approval to export chips made with controlled materials anywhere in the world — including to the U.S.
It’s a reversal of the dynamic that has defined recent years: after Washington sought to choke off China’s tech access, Beijing is now asserting its own leverage by restricting the minerals that underpin modern technology.
What It All Means
China’s twin moves — rhetorical defiance and regulatory assertiveness — mark a turning point. The embassy’s warning that China “will take resolute measures” is now reflected not only in statements but in policy.
The export-control rules show how interdependent the global tech supply chain remains. Even companies outside China’s borders, from TSMC in Taiwan to Samsung in South Korea, could face ripple effects if Beijing decides to limit their export licenses.
With Trump threatening sweeping new tariffs and China tightening its grip on critical materials, both countries appear locked in a cycle of retaliation.
For now, the world’s chipmakers — and the industries that rely on them — are caught in the middle of a geopolitical contest that is quickly expanding beyond trade.
