Chinese firms have been pursuing internal reforms, supply chain restructurings, and accelerated innovation, with the result of “selective decoupling” from the U.S.

If the US is determined to fight a tariff and trade war, China’s response will continue to the end,” Liu Pengyu, spokesperson for the Chinese embassy in Washington, DC, said in a statement to WIRED.

The trade war between the world’s two largest economies is escalating as China slapped a 125% tariff on U.S. goods in response to President Donald Trump’s 145% tariff on Chinese products