Beijing has promised countermeasures if US President Donald Trump follows through on his promise to impose new 100% tariffs on Chinese imports.
The came after China implemented a series of export restrictions on rare earth minerals last week. Escalating tensions threaten to derail months of progress in trade negotiations.
“Resorting to threats of high tariffs is not the right way to engage with China,” a Ministry of Commerce spokesperson said on Sunday (12), in Beijing’s first comments on the threat.
“If the US persists in acting unilaterally, China will resolutely take corresponding measures to safeguard its legitimate rights and interests,” the spokesperson added.
“Our position on a tariff war remains consistent – we don’t want one, but we are not afraid of one,” he added.
Rapidly escalating trade tensions between the world’s two largest economies and industries have sparked fears of a repeat of the spring’s retaliatory tariff battle, when duties on Chinese and American imports soared to around 145% and 120%, respectively.
This also brings new uncertainty to the ongoing trade negotiations between the two countries.
Trump and the Chinese leader were expected. Xi Jinping, held a long-awaited meeting in South Korea within two weeks, but the American, citing , cast doubt on the meeting being held.
Beijing shows no sign of backing down, with the ministry’s spokesman urging Washington to “promptly correct its misguided approach” and “preserve the hard-won progress in negotiations.”
The Commerce Ministry described it as a “legitimate action” and blamed Washington for the recent escalation, pointing to the Trump administration’s introduction of a series of new restrictive measures against China two weeks after the last round of trade talks in Madrid in September.
Since then, Washington has added several Chinese companies to its ranks, expanding its controls to cover subsidiaries of listed companies, as well as imposing special port fees on Chinese ships.
“The US actions have seriously harmed China’s interests and undermined the atmosphere of bilateral economic and trade negotiations. China firmly opposes these measures,” the spokesperson said.
The sweeping new controls on rare earths announced by Beijing included an expanded list of restricted minerals and extended restrictions on their overseas production and use technologies, including for semiconductor and military applications.
This is expected to put pressure on global industries and technology supply chains, which rely on these minerals to produce everything from everyday electronics, semiconductors and automobiles to fighter jets.
On the social network Truth Social, Trump described China’s “shocking” action as “extremely hostile” and a “moral disgrace in relations with other nations.”
Experts said Beijing’s measures largely reflect restrictions Washington has placed on semiconductors over the years, which limit the export of chips or chipmaking equipment to China — whether from the U.S. or a third country where they were made using American technology.
China’s Ministry of Commerce said Washington’s reaction to its new rules on rare earths demonstrates its “double standards.”
“For too long, the United States has overstepped the concept of national security and abused export controls, adopting discriminatory measures against China and imposing unilateral ‘far-reaching jurisdiction’ restrictions on a wide range of products,” the spokesperson said.
The US export control list covers more than 3,000 items, compared with just over 900 on China’s list, they added.
Beijing has long criticized Washington for exerting control beyond its borders through export rules that prevent third-party companies from supplying China with chips made with American technology.
China’s decision signaled a shift in its strategy as it adopted similar tactics.
