China is holding a "secret weapon" in the form of AI-powered robotics technology that will revolutionize manufacturing and mitigate the impact of tariffs.

"Whoever ties the knot must untie it," Chinese Ministry of Commerce spokesman He Yadong said on April 24, referring to the "unilateral tariff increase originating from the US." According to He, to resolve the issue, the US must "completely eliminate all unilateral tariff measures against China and seek to resolve differences through equal dialogue."

China's tough statement comes after US President Donald Trump recently made a series of conciliatory moves that Washington is "actively negotiating" with Beijing and will "significantly reduce" tariffs on Chinese goods.

Observers say that China is in no hurry to make concessions or compromises, as it has many advantages in the tariff battle with the US. One of those advantages is that factories across China are automating at a dizzying pace. Armies of robots, capable of handling many steps in the production process, have significantly reduced costs while improving product quality.

This has allowed factories to keep export prices low for many goods, giving China an advantage in the trade war with the US and partly counteracting the high tariffs that President Trump has imposed.

Chinese factories are now more automated than those in the US, Germany or Japan. According to the International Federation of Robotics, China has more factory robots per 10,000 workers than any other country except South Korea and Singapore.