After US President said that US is dominating in trade war with China, Beijing responded that it is ready to withstand economic downturn, Bloomberg reports.

The country is ready to long-term conflict and can sacrifice short-term interests. China also prepared list of US items consisting of 5207 items to impose tariffs from 5% to 25% in response to US threats to apply duties to $200 billion of Chinese imports. Tension in US-China trade relations is growing amid slowdown in Chinese economy, declining yuan and pessimistic mood at country’s stock market.

US is going to use money received in form of duties to pay debt that reached $21 trillion and continues accumulating after tax reduction reform.

List of goods for US tariffs includes already 6000 items. As Bloomberg notes, 500 of them are not even traded between China and US. Last part of list was prepared to stimulate China to get back to negotiation table and to make concessions. It is obvious that this tactic is not working.