Chinese leader Xi Jinping has declared for the first time that his nation is "not afraid" of the escalating trade war with the United States, which has rattled international markets and fueled fears of a global recession.
"There are no winners in a trade war, and going against the world will only lead to isolation. For more than 70 years, China's development has relied on self-confidence and hard work, and it is not afraid of any unfair oppression," the Chinese president said.
The comments come as the Spanish prime minister is in China to talk about the trade war.
Xi Jinping called on the EU to jointly "oppose US unilateral practices," referring to the US's sweeping global tariffs.
Earlier this week, China announced an 84% tariff on goods imported from the U.S. The tariffs were later increased to 125%, with the White House saying on Thursday that tariffs on Beijing could reach 145% on some products.
But despite the US administration showing little sign of easing by suspending tariffs for a 90-day period, financial markets remain shaky, foreign leaders are struggling with how to respond to a breakdown in the world trade order and an escalation with China that has fueled fears of a global recession.
Trump's tactics are supposed to force China to sit down in negotiations, as happened in his first term when the two sides reached a trade deal that was never fully implemented even before the Covid-19 pandemic shut down US relations with Beijing.
So far, the EU has reached out to the US seeking a trade deal with the US during this 90-day pause. However, the bloc is also “developing retaliatory measures” if talks fail, including imposing a tax on advertising revenue from US tech companies such as Meta and Google.
The US and Vietnam have also agreed to begin formal trade talks, according to the White House. Vietnam has said it may target Chinese goods shipped to the United States through its territory in hopes of avoiding tariffs, according to Reuters.
The Japanese prime minister, meanwhile, has set up a trade task force and hopes to visit Washington next week. Taiwan, on the other hand, also expects to be included in the first group of trading partners to hold talks with Washington.