Global security concerns escalated today as Beijing declared that it is “ready for war” with the United States, responding to heightened trade tensions and economic sanctions imposed by the Trump administration.
The world’s two largest economies—the United States (GDP: $27.4 trillion in 2024) and China (GDP: $17.8 trillion)—are now locked in a fierce economic and military standoff, with Washington’s dominance in technology and finance clashing against Beijing’s industrial and export-driven strength.
In a move that has further strained relations, President Donald Trump has ramped up economic pressure on China, increasing tariffs on Chinese imports from 10% to 20%. In retaliation, China imposed a 15% tariff on U.S. agricultural products such as chicken, wheat, corn, and cotton, alongside a 10% tariff on soybeans, pork, beef, seafood, and dairy products, effective March 10, 2025.
Adding to the volatility, U.S. Defense Secretary Pete Hegseth stated that the U.S. is prepared to go to war with China over tariff disputes, highlighting the importance of military strength and national security preparedness. In response, Beijing vowed to retaliate “by any means necessary”, with state-run media reinforcing the message that China “will fight until the end” if provoked.
Military delegates arrive for the annual political gathering in Beijing on Wednesday Credit: Kevin Frayer/Getty Images/Financial Times
Reacting to growing tensions, China announced a 7.2% increase in defense spending, setting its annual economic growth target at around 5% for 2025.
Premier Li Qiang, China’s second-highest-ranking official after President Xi Jinping, reaffirmed the need for military expansion, combat readiness, and modernization. Addressing China’s top legislative body during the annual Two Sessions meeting, he emphasized the country’s commitment to strengthening its economic resilience and military capabilities amid foreign pressure.
“We will step up military training and combat preparedness to firmly safeguard China’s sovereignty, security, and development interests,” Li Qiang declared.
China Boosts Defense Spending and Military Readiness
China has intensified military drills in Asia and the Pacific, raising alarms among neighboring countries. Beijing’s recent live-fire exercises off the Australian coast, naval drills near Taiwan and Vietnam, and confrontations with Philippine coast guard forces in the South China Sea have escalated concerns.
The unveiling of a new nuclear-powered aircraft carrier, designed to rival the U.S. Navy’s fleet, signals China’s ambition to expand its global military reach. Despite this, China’s military budget remains significantly lower than that of the United States.
While the U.S. has allocated $850 billion for defense in 2025, China’s official defense budget stands at 1.78 trillion yuan (£190 billion or $250 billion). However, U.S. intelligence agencies estimate that China’s actual defense spending could be as high as $450 billion, due to undisclosed military expenditures across different budget categories.
Beyond military posturing, Beijing has lodged formal complaints with the World Trade Organization (WTO) over the new U.S. tariffs. Additionally, China has imposed fresh export restrictions on key American industries, further deepening the trade rift.
China’s Ministry of Foreign Affairs dismissed Trump’s justification for the tariffs—linking them to the fentanyl crisis—as a “flimsy excuse.” In a statement on X (formerly Twitter), the ministry wrote:
“The fentanyl issue is just an excuse to justify raising tariffs on Chinese imports. Our countermeasures to defend our rights and interests are fully legitimate and necessary. Intimidation does not scare us. Bullying does not work on us.”
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Experts Weigh In: A War of Words or a Real Threat?
According to the Financial Times, Beijing’s rhetoric has been notably aggressive. However, analysts believe that China is not actively preparing for war but is instead responding to Trump’s economic and strategic provocations.
Financial Times also documented that Prof. James Char Tze Siang, an expert in Chinese foreign policy at the S. Rajaratnam School of International Studies in Singapore, likened the situation to China’s “Wolf Warrior” diplomacy, stating:
“It is usual for the Chinese Communist Party (CCP) to talk tough against what it perceives as foreign attempts to weaken its rise or influence its policies. This is just another episode in the fluctuating U.S.-China relationship since their rapprochement in 1972.”
Similarly, Philip Shetler-Jones, a senior research fellow at the Royal United Services Institute, noted:
“The language is not that new, but the context is. In this instance, the rhetoric is being used in response to tariffs rather than military confrontations, so I don’t find it particularly alarming.”
However, Shetler-Jones warned that China might be deeply concerned about Trump’s diplomatic approach, particularly his warming relations with Russia. He suggested that China fears the U.S. is laying the groundwork for a focused geopolitical struggle against Beijing, rather than maintaining a multi-front global strategy.
With trade restrictions tightening, military posturing escalating, and diplomatic ties worsening, the world is watching to see how far the U.S.-China conflict will go. While economic battles have been the main point of contention, the risk of military confrontation in the Pacific remains a growing concern.
Both superpowers have entered a new phase of their strategic rivalry, and the coming months will determine whether diplomacy prevails or tensions spiral into a deeper crisis.
Stay tuned to New Daily Prime for the latest updates on the U.S.-China standoff.
