Chinese leader Xi Jinping has said his nation is “not afraid,” in his first public comment on the escalating trade war with the United States, as Beijing raised tariffs on US goods to 125%.

Speaking with Spanish Prime Minister Pedro Sanchez in Beijing, Xi emphasised China's seven-decade history of self-reliance, rejecting reliance on foreign aid. According to CCTV, he cautioned that "there are no winners in a trade war,

On Friday, China’s finance ministry said it was raising tariffs on U.S. goods from the previously announced 84 per cent to 125 per cent, though it noted “if the U.S. continues to play the tariff numbers game, China will ignore it.”