China slams US tariffs, says its economy is resilient but there are no winners in a trade war

China will not yield to bullying and its economy can weather higher tariffs imposed by U.S. President Donald Trump and other challenges, the Chinese commerce minister said Thursday, though he added that there are “no winners in a trade war.”Speaking on the sidelines of the annual session of China’s national congress, Wang Wentao reiterated Beijing’s calls for talks. Coercion and threats are bound to fail, he said, noting that China’s role as a main trading partner of 140 nations means it has plenty of options. Wang and other officials outlined Beijing’s strategies for building its economy and financial markets, but did not announce any major new initiatives.

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The Trump administration has raised tariffs on imports from China twice since taking office in January. China has hit back with duties and other restrictions on American goods and companies. Wang said China expects mutual respect in its dealings with other countries.Read more: European Central Bank cuts interest rate by 25 bps to 2.65% from 2.9%

“Coercion and threats will not work on China, nor will they scare China. China’s determination to defend its own interests is unswerving,” Wang said, adding that “there are no winners in a trade war.”

“If the American side goes further down this wrong path, we will continue to respond in kind,” he said. ”We will fight to the end.”

Still, he stressed that China is open to resolving differences over trade. “Our two sides can meet at an appropriate time and our teams can also have communication as early as possible,” he said.

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Blaming China for the U.S. fentanyl problem — Trump’s stated reason for imposing 20% tariffs on all imports from China — won’t solve the problem, he said.

China is the main trading partner of 140 countries and regions and has free trade agreements with more than 30 countries, Wang said.

“We are ready to sign more FTA,” he added.

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Wang acknowledged that Chinese exporters face serious challenges but said Beijing is encouraging companies to participate in trade shows and to expand globally. The Chinese government is also expanding its financial support for export credit and hopes to increase trade in services and e-commerce.

“We do not put all our eggs in one basket,” he said.

A slump in China’s housing market and lackluster share prices, scant social welfare and job losses since the COVID-19 pandemic have weighed on China’s economy, dragging on growth.

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Zheng Shanjie, head of the National Development and Reform Commission, China’s main national planning agency, acknowledged that forecasts for economic growth for 2025 tend to be around 4.6% to 4.8%, below the government’s target of “around 5%.”

Zheng said the government is drafting a “specialised plan of action” to encourage more consumer spending and investment. He did not provide specific details.

China will spend more on “livelihood and consumption,” Finance Minister Lan Fo-an said, promising more help for deeply indebted local governments and bigger investments in education, social security and public health.

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“We will make sure that every coin is well spent,” Lan said, adding that “the central government has left ample room for policy to be implemented.”