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China Warns the US: “No Winners in Trade Wars” — What This Means for Global Markets

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In a strongly worded statement, China has made it clear to the United States that it does not seek conflict but will not back down if pushed into a corner. On April 10, China’s Ministry of Commerce emphasized that no one benefits from a trade war—underscoring the deepening tensions between the world’s two largest economies.

Speaking on the matter, Foreign Ministry spokesperson Lin Jian said, “The U.S. cause doesn’t have the people’s support and will ultimately fail.” His message reflected China’s firm stance: it will not allow its national interests or the rights of its people to be compromised. Lin went on to affirm that while China prefers peaceful dialogue, it will defend itself if necessary.

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China’s position was further echoed by the Ministry of Commerce’s spokesperson He Yongqian, who emphasized that “pressure, threats, and blackmail” are ineffective strategies. In his words, if the U.S. insists on its aggressive approach, “China will follow through to the end.”

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However, China also extended an olive branch, indicating it remains open to dialogue—but only under the conditions of mutual respect and equality. This echoes previous sentiments where China has expressed willingness to resolve trade disputes diplomatically rather than through confrontation.

Meanwhile, China’s Foreign Ministry spokesperson Mao Ning added fuel to the rhetoric by sharing a historic speech from Mao Zedong during the Korean War, reinforcing China’s determination to “fight to the end” if provoked.

Despite the escalating tension, former U.S. President Donald Trump acknowledged that a deal with China is still possible. “China wants to make a deal. They just don’t quite know how to go about it,” he said. However, U.S. officials have made it clear that they are now prioritizing trade discussions with other key allies in Asia—namely Vietnam, Japan, and South Korea.

China, on its part, is not waiting idly. It has already begun strengthening trade relations with other nations. Talks with the European Union and Malaysia have been initiated, aiming to build new alliances amid uncertainty with the U.S. Interestingly, Australia, one of China’s major trading partners, reportedly declined an offer from Beijing to collaborate on offsetting the impact of the U.S. tariffs.

Despite a momentary boost in global stock markets following the news, investor confidence remains shaky. The long-term effects of a full-blown trade war could be damaging—not just for the U.S. and China, but for the global economy at large.

As the world watches closely, one thing is clear: a peaceful resolution is in everyone’s best interest. But for now, both economic giants appear to be bracing for impact.

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