China can protect its interests even if a trade war breaks out

China's response after US President Donald Trump signed a memorandum on Thursday which imposes tariffs on Chinese imports is clear: The country will take countermeasures and the United States will pay a heavy price for its decision if it does not "pull back from the brink". Speaking with US Treasury Secretary Steven Mnuchin by phone on Saturday morning, Vice-Premier Liu He said that China is "fully prepared" and is "capable of safeguarding its national interests".

Liu also pointed out the US is violating global trade rules, and its actions are detrimental to the interests of China, the US, and the whole world.

White House National Trade Council Director Peter Navarro has claimed that China benefits far more from trade relations with the United States rather than the reverse, meaning retaliation might be difficult for China, but that ignores the trade in services from which the US clearly benefits more, as well as China's consistent stance that it will resolutely oppose unilateral trade actions and it will not give in to threats or blackmail.