BEIJING—Chinese President Xi Jinping is responding to the Trump administration’s trade-clash escalations with a bare-knuckle approach that makes a bruising fight more likely.

After President Donald Trump raised the ante last week on punitive tariffs against Chinese products, Mr. Xi told a group of 20 mostly American and European multinational chief executives on Thursday that Beijing plans to strike back, according to people briefed on the event.

“In the West you have the notion that if somebody hits you on the left cheek, you turn the other cheek,” the Chinese leader said, according to the people. “In our culture we punch back.”

To do so, Beijing has a range of tools at its disposal. While its tariff options are limited by the level of American imports, Beijing can—as it has already done in some cases—hold up M&A deals involving U.S. companies, delay licenses, ramp up inspections or drive its 1 billion-odd consumers to shun American products.

Taking a less-compromising tone in dealing with the U.S., Mr. Xi has also urged senior officials in a recent meeting to promote China’s global role as the U.S. faces a backlash for its America First agenda, according to state media and Chinese officials.