While the recent so-called "reciprocal tariff" policies of the Trump administration have been unpredictable and inconsistent, in contrast, China's Ministry of Commerce statement on April 10 has been clear and consistent: "Talk? Our door is wide open. Fight? We will fight to the end!"
Where does China's confidence stem from when the U.S. trade war against it in recent times has lasted for over seven years? Although China's proposal for cooperation has been repeatedly spurned, China has consistently replied to challenges with innovation.
Fixing weaknesses, leveraging strengths
To guard against a sudden and disruptive halt in the supply of critical foreign core products or components, Chinese enterprises have invested heavily in addressing technological gaps and bolstering competitive strengths. Fighting against technological hegemony requires self-reliance and they realized they have to prioritize the development of indigenous innovation capabilities.
China's confidence is rooted in its remarkable technological breakthroughs. Huagong Technology Industry is an example. The company once struggled to produce laser cutting machines due to its reliance on imported screws, each of which cost three USD. After years of relentless R&D, the company has not only resolved this dependency but developed a cutting-edge five-axis 3D laser cutting machine that has set global standards.
In addition to individual companies' achievements, China's broader industrial strategy has also driven progress in key sectors like rare earth manufacturing, making it high-value-added, intelligent and eco-friendly. Ganzhou in Jiangxi province in eastern China, a major source of rare earths, has become a hub of rare earth-based new materials and advanced manufacturing. The region is home to a synergistic ecosystem where new materials and advanced manufacturing applications are clustered, supporting each other and fostering innovation. Their collective industrial scale exceeds 100 billion RMB.
There are numerable other cases due to the hard-working Chinese spirit, and these endeavors have not gone unrecognized.
According to the Global Innovation Index 2024, China ranked 11th among 133 economies — a notable six-spot improvement from seven years ago.
Policies support collaborative industrial development
When breakthroughs in core technologies are urgently needed, support is never far behind. NanoMicro Tech Co. in Jiangsu province in east China once faced significant challenges due to foreign monopolies on nanosphere technology. With crucial assistance from the Suzhou Industrial Park — including angel investments and partnerships with high-level research institutions — NanoMicro successfully advanced the technology, ultimately reducing the global price of comparable products by 90 percent.
Investors like the Suzhou Industrial Park are numerous in China.
In today's China, people have a high degree of consensus on promoting high-quality development. This unified approach to fostering new quality productive forces and accelerating high-level self-reliance in science and technology spans the central government as well as the local administrations. A series of coordinated "top-down" policies have created a resonant effect, fast-forwarding advancements and providing robust protection for the Chinese economy against external challenges.
Focus on systematic and long-term development
China's preparations span multiple levels and dimensions. The focus is on developing entire industrial ecosystems, from upstream to downstream. Talent cultivation, scenario building, and fostering innovation are also important.
China is providing scenarios for companies and technological institutions to test their innovations. The recent humanoid robot half-marathon in Beijing, the first in the world, is an example of that. Another example is cities like Beijing, Shanghai, and Hangzhou establishing dedicated zones for testing autonomous driving technologies.
China is also assiduously cultivating its talent pool. Shenzhen University in the south has launched the "Academician Class," an undergraduate training model where academicians serve as the head teachers and the presidents of well-known technology companies act as mentors. This initiative aims to assist real talents in engaging with laboratories, teams, projects, and be at the forefront of science and technology. Moreover, China boasts a vast population of graduates from STEM-related majors, further bolstering its innovation capacity.
At the same time, regional collaboration is deepening. In the Yangtze River Delta — one of China's most open regions — Shanghai provides the investment capital, Zhejiang contributes digital technology expertise, Jiangsu focuses on energy equipment, and Anhui specializes in new energy vehicles. This interconnected approach ensures that no region fights alone.