Despite this, the Chinese Foreign Ministry asserted its position by releasing an English-language video with Chinese subtitles that, without naming President Donald Trump, portrayed the U.S. as an aggressive global actor other nations should be wary of appeasing. "Bowing to a bully is like drinking poison to quench thirst — it only deepens the crisis," the narrator says, adding, "History has proven that compromise won't earn you mercy — kneeling only invites more bullying. China won't kneel down."

Why It Matters: The manufacturing slowdown comes after Trump imposed new tariffs amounting to a total of 145% on Chinese imports. China, in retaliation, has imposed 125% tariffs. Analysts noted that these tit-for-tat measures have significantly disrupted trade flows, with a major drop in container traffic between the two nations.

To deal with the fallout, Beijing has implemented targeted tariff exemptions and moved to enhance fiscal support, but economists warn that current stimulus measures may not be enough.

Trump recently hinted that he expects tariffs on Chinese products to be relaxed, while Treasury Secretary Scott Bessent said the current levels are "unsustainable." However, Trump also made clear that any withdrawal would come only after a comprehensive proposal from Beijing. China has repeatedly denied that any formal trade negotiations are underway, even though the Trump administration has claimed otherwise.

As Bessent negotiates with 17 other countries dealing with U.S.-imposed tariffs, China calls the U.S. a "paper tiger," and says: "We know standing up for ourselves keeps the possibility of cooperation alive…China won't back down so the voices of the weak will be heard, bullying will be stopped and justice will not disappear from the world." Earlier this month, China’s Ministry of Commerce issued a similar statement.