China has responded to last week’s heightening of U.S. tariffs on its imports. Starting June 1, according to China’s finance ministry, a slate of American products worth about $60 billion will face tariffs raised from 10% to upwards of 20% or 25%. Stocks tumbled in response to the news. The S&P 500 fell more than 1.5% at the start of trading this morning. This follows last week’s 2.2% drop — the index’s worst weekly performance of the year. Talks between the U.S. and China have failed to yield a compromise. China’s former vice-minister of commerce, Wei Jianguo, told the South China Morning Post that China was prepared for a long trade war. "China will not only act as a kung fu master in response to U.S. tricks, but also as an experienced boxer and can deliver a deadly punch at the end," he said. We examine the Chinese government’s strategy with Wen Huang, an independent journalist and writer. He’s author of the books The Little Red Guard and A Death in the Lucky Holiday Hotel: Murder, Money and an Epic Power Struggle in China.