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%.

President Donald Trump insisted Wednesday that his tariffs would ultimately force Chinese President Xi Jinping to come to the table.

What liberation day has shown us is that the Chinese-American relationship has entered a stage of protracted competition, a phase that Beijing has been preparing for over the past decade. Faced with a choice between humiliation on the international stage or economic disaster at home, it would appear neither side is willing to back down.