Chinese President Xi Jinping has warned that “there is no winner in a tariff war,” following Beijing’s decision to impose retaliatory tariffs on US goods, raising the total effective rate to 125 per cent. This comes in response to US President Donald Trump’s move to hike duties on Chinese imports to 145 per cent.

Speaking during a meeting with Spanish Prime Minister Pedro Sanchez in Beijing, Xi emphasized that going against global consensus would only lead to self-isolation. He reiterated China’s stance of development through self-reliance and resilience, citing over 70 years of progress without relying on external favors.

“No matter how the external world changes, China will remain confident and focused on managing its own affairs,” Xi said, according to Xinhua news agency.

Highlighting the importance of China-EU cooperation, Xi noted that both are global economic powers and advocates of economic globalization and free trade. Together, they account for over one-third of the world’s total economic output.

He urged China and the European Union to act together to uphold international trading rules, resist unilateral bullying, and defend multilateralism.

“These efforts will protect the legitimate rights of both parties and maintain global fairness, justice, and order,” he stated.

Prime Minister Sanchez affirmed China’s value as a strategic partner of the European Union, saying Spain supports stable EU-China relations. He echoed Xi’s sentiment, emphasizing that no one benefits from a trade war.

Sanchez also voiced the EU’s commitment to free trade and multilateralism, rejecting unilateral tariff hikes. In a time of global uncertainty, he stressed the importance of working together on shared challenges such as climate change, poverty, and the protection of the international trade system.