Bangkok: China reaffirmed its determination to “fight to the end” on Wednesday amid a deepening trade conflict with the United States. This comes as Beijing announced it would raise tariffs on American goods to 84 percent from Thursday.

The move follows US President Donald Trump’s decision to increase the overall tariff on Chinese imports to 104 percent. In response, China outlined a series of countermeasures, including a new case filed against the US at the World Trade Organization and additional restrictions targeting trade between Chinese firms and American companies.

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Firm warning from China

“If the US insists on further escalating its economic and trade restrictions, China has the firm will and abundant means to take necessary countermeasures and fight to the end,” the Ministry of Commerce stated in a release introducing its white paper on trade with the United States.

Beijing has not confirmed whether it will engage in direct negotiations with the White House, unlike several other countries that have opted for dialogue.

Further countermeasures announced

Last Friday, China introduced a 34 percent tariff on all American imports, along with export controls on rare earth minerals and a number of other restrictions in response to Trump’s “Liberation Day” tariffs. The US later imposed a further 50 percent tariff on Chinese goods, stating that negotiations with Beijing had been called off.

The latest Chinese measures include placing 11 American firms on a so-called “unreliable entities” list, effectively prohibiting Chinese companies from trading dual-use goods with them. Among these are American Photonics and SYNEXXUS, both of which supply the US military.

Calls for equality in dialogue

China has shown little interest in entering negotiations at this stage.

“If the US truly wants to resolve issues through dialogue and negotiation, it should adopt an attitude of equality, respect and mutual benefit,” said Lin Jian, spokesperson for the Ministry of Foreign Affairs, on Wednesday.

Phase 1 deal disputes

According to China’s white paper, the US has failed to uphold commitments made in the phase 1 trade deal signed during Trump’s first term. One such example cited is a US law requiring the sale of TikTok by its Chinese parent company, which Beijing claims contradicts an agreement to refrain from forcing technology transfers.

Last week, Trump extended TikTok’s operations in the US by 75 days after a potential sale to American owners was delayed. ByteDance has since reached out to the White House, suggesting that no deal will be approved by China without broader discussions on trade and tariffs.

The white paper also claims that overall economic exchange between the two nations is “roughly in balance” when considering trade in services and the operations of US firms within China. It notes that in 2023, China recorded a $26.57 billion deficit in trade in services with the US, including sectors such as banking, insurance, and accounting.

Trump’s tariffs, which were intended to close trade deficits with other countries, were calculated only based on physical goods, not services.

Warning of economic impact

“History and facts have proven that the United States’ increase in tariffs will not solve its own problems,” the Chinese commerce ministry said.

“Instead, it will trigger sharp fluctuations in financial markets, push up US inflation pressure, weaken the US industrial base and increase the risk of a US economic recession, which will ultimately only backfire on itself.”

AP