🔗 Share this article

Donald Trump’s latest threat to impose an further full import duty on Chinese goods has been called a “classic case” of United States’ contradictory behavior, as stated by the China’s leadership.

A official from China’s Commerce Ministry also stated that China could introduce its own unspecified “countermeasures” if the US President follows through on his threat, emphasizing that the country was “fearless” of a looming trade conflict.

Last Friday, Trump hit back at Beijing’s move to strengthen its policies for overseas sales of rare earths, charging Beijing of “becoming very hostile” and attempting to hold the international market “hostage”.

He also warned to cancel a arranged meeting with Chinese leader President Xi, which was expected to take place during a conference in South Korea before the month ends.

His statements on last Friday shook stock exchanges, with the S&P 500 falling by 2.7%, marking its biggest drop since earlier this year.

These statements reignited concerns of a trade war between the United States and China.

In May, the two sides had reached an agreement to drop significant levies on each other’s imports, which had created the possibility of bilateral trade stopping between the two countries.

This left, United States levies on products from China subject to an additional import tax compared with the year’s onset, while items from the United States entering the Chinese market incur a import levy.

China’s latest remarks – issued by the relevant government department in the form of formal replies to media inquiries – reflected rhetoric from the height of the latest commercial tensions.

Officials denounced United States controls on chips and semi-conductors while supporting the country’s own overseas sale regulations on rare earth minerals as “routine measures” to safeguard state interests and that of every country.

The spokesperson stated that for “an extended period”, the America had “overstretched the concept of state security, exploited overseas sale restrictions and “implemented” unfair treatments against the Chinese nation.

“Turning to” trade levy ultimatums is not the right way to deal with the Chinese government,” the official said.

“The nation’s view” on a tariff war has always been steady: we are not seeking one, but we are unafraid of one.”

Last week, Beijing revealed it was tightening overseas sale regulations on rare earth minerals and further resources essential to advanced tech manufacturing.

The action was viewed as a key move, as the nation processes about 90% of the world’s rare earths, which are used in products such as photovoltaic modules and mobile phones.

Latest statements from the US and China are being viewed by some as a method of bolstering negotiating stances prior to forthcoming discussions.

It is unclear whether a talks between Trump and Xi Jinping, planned at a conference in the Republic of Korea before month’s end, will go ahead.