The US and China implemented tariffs on US$34 billion ($46 billion) worth of each other's goods last month.
That was in response to the USA proposal of a 25 per cent tariff on US$200 billion worth of Chinese imports.
Beijing has responded by releasing more liquidity into the banking system, encouraging lending and promising a more "active" fiscal policy.
US companies are putting in place measures to cushion the impact of the trade row, including price hikes, and a number of companies - from industrial firms to home furnishers and toymakers - have said they will move some sourcing and manufacturing outside of China.
If China goes forward with the decision nearly 90% of the USA's exports to China will be subjected to the tariff.
The paper referred to a Saturday Tweet by Trump which said "Tariffs are working far better than anyone anticipated".
The Chinese media continues to criticise US President Donald Trump's trade policies.
The newspaper also stated that China's stock market was performing poorly before the United States administration's imposition of trade tariffs, and is due in part to Beijing's attempts to cut corporate debt.
McCarthy said that while China's proposed new tariffs appeared proportionate, "White House tweets claiming an upper hand for the USA over the weekend risk another round of confidence sapping exchanges".
The Communist Party paper said that Beijing would overcome the American "trade blackmail", adding: "China will not surrender to the U.S., nor could it ignore the trade war".
"Market participants foresee a relatively stable Chinese currency in the near term, without fear of impacts from the U.S".
"Washington is playing double-faced tactics in the ongoing trade war", the official newspaper of the Chinese Communist Party said in its editorial. If Trump moves forward with this war.
In a separate commentary, in the People's Daily overseas edition, a researcher at the Commerce Ministry reiterated this stance, saying China was strong and resilient enough to weather the trade dispute.
This statement was made in the Beijing-controlled China Daily after Trump posted on Twitter that the Chinese market had taken a phenomenal fall.