China s Xi switches to fight mode as Trump trade deal looks unlikely

BEIJING - Chinese President Xi Jinping’s decision to quickly retaliate against US President Donald Trump’s sweeping tariffs sent the world a clear message: If the US wants a trade war, China is ready to fight.

After weeks of responding with only targeted measures and calling for dialogue, China signalled a tougher approach on April 4 by answering Mr Trump’s “reciprocal” tariffs with blanket duties of its own and more export controls.

The Communist Party’s official newspaper followed that up with an April 7 editorial declaring Beijing is no longer “clinging to illusions” of striking a deal, even as it leaves a door open to negotiations.

China’s defiant response has left investors bracing themselves for a prolonged and disruptive trade war.

Mr Trump deepened those worries on April 7, threatening an additional 50 per cent in tariffs if Beijing does not withdraw its planned retaliation.

The 50 per cent charge would come on top of the 34 per cent duty the president imposed on all Chinese imports – set to begin on April 9 – as well as a 20 per cent levy that he put in place earlier tied to fentanyl trafficking, according to a White House official.

Mr Trump also warned in a social media post that the US would cut off all future meetings and negotiations with China if action was not taken in the coming days.

“We believe that before we can sit down to negotiate a deal we have to fight, because the other side wants to fight first,” Dr Wu Xinbo, director at Fudan University’s Centre for American Studies in Shanghai, said of China’s stance.

On the possibility of a Trump-Xi call, Dr Wu said: “You just slapped my face, and I’m not just going to call you and beg your pardon.”

As China confronts