China’s shift from courting Trump to a firm defiance of tariffs

China has placed civilian government officials in Beijing on a “wartime footing” and initiated a diplomatic campaign to persuade other nations to resist the tariffs imposed by U.S. President Donald Trump, according to four sources familiar with the situation.

Officials from the Communist Party have been instrumental in shaping China‘s response, with government representatives sharing assertive videos on social media that feature former leader Mao Zedong proclaiming, “we will never yield.”

As part of this “wartime” strategy, which is reported by Reuters for the first time, officials in the foreign affairs and commerce ministries have been instructed to cancel their vacation plans and keep their mobile phones on at all times, according to two of the sources. Additionally, departments focused on U.S. relations have been strengthened, including the addition of officials who previously worked on China’s response during Trump’s first term.

This aggressive, all-encompassing governmental approach following Trump’s “Liberation Day” announcement signifies a significant shift for Beijing, which had previously sought to avoid escalating a trade war. For several months, Chinese diplomats attempted to establish a high-level communication channel with Trump’s administration to advocate for what China’s cabinet has characterized in state media as a “win-win” trading relationship.

Some optimistic Chinese observers even hoped for a comprehensive agreement with Trump regarding trade, TikTok, and potentially Taiwan.

This narrative of China’s transition from pursuing a deal to retaliating with tariffs and openly defying the U.S. is based on interviews with over a dozen individuals, including U.S. and Chinese government officials, as well as other diplomats and scholars informed about bilateral discussions. Four of these individuals also detailed how Beijing’s diplomats have been reaching out to other nations affected by Trump’s tariffs, including sending letters to solicit cooperation from several countries. Longstanding U.S. allies in Europe, Japan, and South Korea have also been engaged.

China’s foreign ministry did not respond to a request for comment. A representative from China’s embassy in Washington stated to Reuters that while Beijing does not wish to engage in trade wars, it is not intimidated by them.

The spokesperson remarked, “If the U.S. prioritizes its own interests over the collective good of the international community and undermines the legitimate interests of other nations for its own dominance, it will undoubtedly face stronger resistance from the global community.”

The embassies of South Korea and Japan in Washington have not yet replied to inquiries regarding discussions between their nations and China.

Following China’s initial response, Trump remarked, “China miscalculated; they panicked – that is the one thing they cannot afford to do!” He also indicated that while Beijing seems eager to reach an agreement, “they just don’t know how to proceed.”

U.S. officials have attributed the stalemate to China, arguing that its trillion-dollar trade surplus stems from what they perceive as exploitation of the global trade system, which has not been effectively resolved despite years of negotiations.

On April 2, Trump shocked the world by announcing significant tariffs aimed at preventing countries like China from “taking advantage” of the U.S. In response, Chinese leader Xi Jinping abandoned his usual restraint and delivered a nationalistic message, questioning whether American voters could endure as much hardship as the Chinese populace.

The “Liberation Day” tariffs have since been suspended for all countries except China for a period of 90 days. With few exceptions, trade in goods between China and the U.S. is now largely stagnant, and Beijing is beginning to impose restrictions on service trade, while advising its citizens against traveling to the U.S. and limiting the import of American films.

POLITE BEGINNING AND A QUICK DETERIORATION

Despite Trump’s election on a platform promising high tariffs, the initial interactions with Beijing were courteous. Trump extended an invitation to Xi for his inauguration, which was ultimately attended by Chinese Vice President Han Zheng.
However, relations began to decline shortly thereafter.
During Trump’s first term, Beijing maintained several high-level communication channels, particularly between then-ambassador Cui Tiankai and Jared Kushner, Trump’s son-in-law.
Currently, there is no similar communication channel, as noted by a Beijing official familiar with Sino-American relations, who mentioned that China is uncertain about who represents Trump in their dealings.
In response to inquiries from Reuters, a Trump administration official stated that the U.S. has “clearly communicated to China our desire for ongoing working-level contact… but we will not engage merely for the sake of engagement or in discussions that do not further American interests.”
Chinese ambassador to the U.S., Xie Feng, made unsuccessful attempts to connect with Trump’s billionaire associate Elon Musk prior to the election, according to a U.S. scholar who recently visited China for informal discussions that Beijing has traditionally used to reach out to Washington policymakers.
Musk did not respond immediately to a request for comment.
Additionally, Chinese Foreign Minister Wang Yi sought a meeting with Secretary of State Marco Rubio, a known critic of China who is under sanctions from Beijing, during a February trip to New York for a United Nations session but was unable to secure a meeting. There has been no publicly reported interaction between the top diplomats of both sides aside from a tense phone call in late January.

Wang was unable to secure a meeting with National Security Adviser Mike Waltz during his recent trip, according to a source familiar with the situation. Previously, Wang had engaged in multiple discussions with Waltz’s predecessor, Jake Sullivan, which included a notable prisoner exchange.

The White House is of the opinion that China should send a senior trade representative in place of Wang to address trade issues, as per insights from an administration insider.

U.S. Commerce Secretary Howard Lutnick has stated that he is “not engaging with China” and noted that Trump prefers to negotiate directly with Xi. This week, Trump expressed his willingness to meet with Xi, whom he referred to as a friend, although he has not provided any specifics regarding a potential agreement.

A Trump administration official mentioned that the U.S. has consistently inquired whether Xi would like to initiate a phone call with Trump, to which the response has always been ‘no.’

Zhao Minghao, an international relations expert at Fudan University in Shanghai, commented that such outreach efforts “do not resonate within the Chinese policymaking framework.” He explained that typically, there is preliminary agreement and collaboration at the working level before a summit can be arranged.

Lynn Song, Chief Economist for Greater China at ING Bank, noted that the treatment of countries attempting to negotiate this year has not been conducive to encouraging China to engage in discussions.

Discussions are currently taking place among lower-level officials from both nations, as reported by one Chinese official and three U.S. officials. However, several working groups established by the Biden administration to address commercial disputes, as well as treasury and military matters, have been put on hold.

LESSONS LEARNED

While numerous countries faced U.S. tariffs for the first time this month, China refined its strategy based on experiences from earlier phases of the Sino-American trade conflict.
Leveraging insights from Trump’s initial term, China developed a comprehensive retaliatory strategy that encompasses tariffs, restrictions on approximately 60 U.S. companies, and limitations on rare earth exports.
This initiative stemmed from weeks of preparation by Chinese government officials assigned to analyze Trump’s policies and propose counteractions that could be implemented progressively, according to two sources familiar with the matter.
Xi chose to respond decisively, imposing widespread tariffs even before Trump’s tariffs took effect. These duties were announced just before the U.S. stock market opened on April 4, coinciding with a public holiday in China, leading to a significant drop in U.S. equities.
One Chinese official involved in the discussions characterized the rapid response as reminiscent of decision-making during the COVID pandemic, which occurred without the usual approvals from all relevant departments.
Some Chinese thought leaders seemed to indicate potential pathways to de-escalate the trade conflict.

Ren Yi, a political blogger with nearly 2 million followers on Weibo, stated in a post on April 8 that countermeasures “do not necessitate a widespread increase in tariffs on American products.” Ren, whose father was a notable reformist leader in the 1980s, proposed specific actions such as halting fentanyl cooperation and imposing additional restrictions on agricultural imports and films.

On Friday, China’s finance ministry announced that with tariffs on U.S. goods currently at 125%, it will cease to match any future increases in duties imposed by Washington, which it referred to as a “joke.”

China’s foreign ministry has called back several heads of its overseas missions to Beijing for a special meeting this week to align their response, according to two diplomats based in the city. Additionally, China has sent formal letters to government officials in other nations that have been pressured by Trump to participate in trade negotiations.

These letters, as described by four individuals familiar with their content, articulated China’s stance and emphasized the importance of multipolarity and solidarity among countries. The communication also included critiques of U.S. policies that mirrored China’s public statements.

China has reached out to some G20 nations with proposed language for a joint declaration supporting the multilateral trading system, according to an EU diplomat. However, the diplomat noted that this messaging did not address concerns shared by non-U.S. governments regarding Chinese overcapacity, its subsidy practices, and allegations of unfair competition. Beijing has dismissed these concerns as exaggerated, asserting that the growth of its high-tech industries stems from its comparative advantages and ultimately benefits the global community.

China is placing significant emphasis on the domestic response to tariffs, as social media users have been actively sharing an editorial from the official People’s Daily dated April 7, which cautions against overreacting.

Recently, the Chinese government has begun to promote increased household spending and has notably altered its messaging regarding domestic consumption. Beijing’s objective is to transition the growth driver from exports to consumer spending, particularly as the economy grapples with challenges stemming from a real estate development crisis.

“The primary focus is on the domestic front, rather than on bilateral discussions,” stated Zhao from Fudan University.

Additionally, Chinese officials shared a video on Musk’s X platform featuring a speech by Chairman Mao from 1953, during the last direct military conflict between the U.S. and China in the Korean War.

In this footage, Mao, whose eldest son perished in the conflict, asserts that the responsibility for peace lies with the Americans. “Regardless of how long this war may endure, we will never surrender,” he declared. “We will continue to fight until we achieve complete victory.”