Chinese leader Xi has responded by hitting the gas on manufacturing, pushing Chinese companies to pump out a surfeit of goods that are pouring into foreign markets and propping up the economy at home.

The Chinese economy is more dependent on exports, making tariffs more potent, yet it’s less reliant on American markets and increasingly bent on self-sufficiency.

The EU will need to respond if Trump implements his proposals for sweeping tariffs, but it has to be careful not to escalate tensions, economists say.

The world is entering an era of protectionism” as the U.S. turns to aggressive tariffs, warns one China expert. How nasty will it get?

This was reported by Financial Times, citing advisers to Beijing and international risk analysts. The Chinese government, led by Xi Jinping, was once caught off guard by Trump’s victory in the 2016 elections and by his subsequent actions to impose higher tariffs,