China is convinced the United States is seeking to use the trade war to contain it and eventually bring down the Chinese Communist Party, but Beijing will not overreact to what it perceives as American provocations, a source familiar with the leadership's thinking told The Sunday Times.

The Chinese leadership now views the US as demonising it, while using a multi-pronged approach to thwart its development, such as going after its technology companies and provoking the People's Liberation Army in the disputed South China Sea.