By China has decided to rattle its saber, declaring itself “ready for war” in response to rising trade tensions with the United States and pledging to resist economic pressure and strengthen its military. This announcement follows Donald Trump’s decision to impose 20 percent tariffs on Chinese imports, citing Beijing’s alleged failure to stem the flow of fentanyl into the U.S. In retaliation, China has unveiled a 7.2 percent increase in defense spending and new tariffs ranging from 10 percent to 15 percent on select American goods. They are set to take effect on March 10.
The Chinese Ministry of Foreign Affairs issued a strong warning, stating that “intimidation does not scare us,” according to The Telegraph, while China’s representatives in the United States directly addressed former President Donald Trump, making it clear that the country is prepared for conflict—whether a “tariff war, a trade war, or any other type of war.”
This latest escalation coincides with the annual Two Sessions meetings in Beijing, where Premier Li Qiang reaffirmed the government’s commitment to military expansion. The planned budget increase raises China’s official defense spending to approximately 1.78 trillion yuan ($250 billion) as President Xi Jinping pushes to modernize the country’s armed forces by 2027. Li vowed “all-out efforts” to strengthen China’s military readiness, emphasizing the need to protect national sovereignty and security interests.
China’s military activities in the Indo-Pacific have already heightened regional tensions. Recent live-fire drills off the Australian coast, naval exercises near Taiwan and Vietnam, and clashes with the Philippine coast guard in the South China Sea have drawn criticism from Japan, South Korea, and India. Meanwhile, reports indicate that Beijing is developing a nuclear-powered aircraft carrier intended to rival American naval power, reported The New York Times.
Three Chinese naval ships, including a cruiser with 112 missile tubes, showed up in the waters near Australia this month, only announcing plans to fire artillery for practice after the exercise had started. A few days later, on Monday, Chinese forces held live-fire drills in the Gulf of Tonkin, after Vietnam pressed its territorial claims in the gulf. Meanwhile, Chinese military aircraft buzz the skies near Taiwan almost daily.
While Washington is consumed with other matters, from Ukraine and the Middle East to budget cuts at the Pentagon, China keeps pressing. The exercises, while relatively brief, highlight that China’s military reach is likely to keep growing, regardless of whether the Trump administration ultimately tries to confront China or pull it into some kind of deal.
The series of drills aimed to show scale and scope, “showcasing China’s expanding naval capabilities and ability to project power across multiple theaters simultaneously,” said Nguyen Khac Giang, a visiting fellow with the Singapore-based ISEAS-Yusof Ishak Institute.
The People’s Liberation Army had been growing more active long before Mr. Trump took office, and China held far larger exercises near Taiwan last year. In its own sometimes ominous way, experts said, China is trying to persuade governments in the Asia-Pacific region that, like it or not, their future lies in accommodating Beijing. And that includes its claims to democratically governed Taiwan and over much of the South China Sea, which is disputed by Vietnam and other countries.
Despite their ambitions and increase in spending, China’s defense budget of roughly $250 billion remains significantly smaller than the United States, which is set at approximately $850 billion for 2025. While the Pentagon estimates that China’s actual military expenditures could be higher than official figures suggest, U.S. defense spending remains unmatched.
Economically, China is grappling with domestic challenges as it aims to maintain a 5 percent growth target for the third consecutive year. The newly imposed U.S. tariffs could further strain its export-driven economy, prompting Beijing to file complaints with the World Trade Organization and introduce additional trade restrictions on certain American entities.
Beijing has also pushed back against Trump’s claim that the trade dispute is linked to the fentanyl crisis, dismissing the accusation as a “flimsy excuse” to justify tariffs. The Ministry of Foreign Affairs described China’s countermeasures as “fully legitimate and necessary,” warning that “bullying does not work on us.”
Secretary of Defense Pete Hegseth has said that he and President Trump are taking the threats from China seriously.
Hegseth responds to China after its FM declares readiness for any type of war with the US: “We are prepared for war. We are rebuilding our military. We are re-establishing deterrence. (…) My job, as Sec of Defense is to make sure we’re ready for war” pic.twitter.com/CURLwmabUt
— Olga Nesterova (@onestpress) March 5, 2025
“If we want to deter war with the Chinese or others, we have to be strong,” Hegseth said during a recent interview. With the election of Donald Trump in November, American military recruiting has reached the highest level in over a decade.
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