President Trump arrives in Beijing this week for meetings with Xi Jinping, but diplomatic pleasantries mask a deepening economic confrontation. China has signaled it is "locked and loaded" for a prolonged trade battle, deploying new legal weapons to counter U.S. sanctions and retaliate against American pressure on Chinese companies.

Beijing recently invoked a 2021 blocking measure to order five Chinese refineries—including Hengli Petrochemical, one of the nation's largest—to defy U.S. sanctions over Iranian oil ties. This marks a sharp departure from China's previously restrained response. In April, authorities announced rules allowing regulators to investigate corporate records, interrogate employees and bar companies from leaving China if they help shift supply chains abroad.

The shift became unavoidable after Washington raised tariffs to 145 percent, imposed fees on Chinese ships at U.S. ports and restricted semiconductors and other critical technologies. Companies now face an impossible choice. PVH, owner of Calvin Klein and Tommy Hilfiger, was placed on China's "unreliable entity list" after stopping cotton purchases from Xinjiang, a move Beijing framed as discrimination.

Whether Trump and Xi can establish even modest guardrails on their expanding economic weapons will determine if this meeting produces anything beyond deeper entrenchment.