BEIJING (Reuters) – China is fully prepared for the United States’ threats to escalate the two countries’ trade war and will have to fight back to defend its dignity and the interests of its people, the commerce ministry said on Thursday.

China upholds the use of dialogue to resolve disputes but equal treatment and keeping to promises are pre-requisites for dialogue, it said in a statement.

U.S. Trade Representative Robert Lighthizer has said that President Donald Trump directed a higher 25-percent tariff from a previously proposed 10 percent, because China has refused to meet U.S. demands and has imposed retaliatory tariffs.