China has not ruled out the possibility of negotiating with the US after Donald Trump’s tariffs, but the country is well prepared to deal with the fallout, Chinese state media reported on Sunday.

“Faced with instability and extreme pressure from the US, we have not closed the door on negotiations,” said an editorial published in People’s Daily. “But we are under no illusions. On the contrary, we have made various preparations to deal with the repercussions.”

China has accumulated “rich experience” in its eight-year trade war with the US, the same article said, adding that the central government is ready to use monetary policy tools such as cutting interest rates “at any time.”

“The sky did not suddenly fall on our heads,” the same columnist added, noting that Beijing has reduced its dependence on the US market, with China’s exports to the US falling to 14.7% in 2024 from 19.2% in 2018.

Warnings to US companies operating in China

Meanwhile, Chinese Vice Minister of Commerce Ling Yi told US companies in China, including Tesla, that the country will always protect their rights and interests.

“China has been, is, and will continue to be a fertile ground for ideal, safe and promising investment by foreign enterprises,” Ling said yesterday at a meeting in Beijing attended by more than 20 US-funded companies, according to the country’s commerce ministry.

The US “reciprocal tariffs “seriously undermined the rules-based multilateral trading system,” Ling said, stressing that “the root cause of the tariff issue lies in the United States.”