In brief
China's government criticized the US for its proposed tariffs and accused it of double standards in international trade. Given Trump's claims of a 'trade war' initiated by China, Beijing remains steadfast but ready to respond should tariffs be imposed. The situation has rattled global markets and cast uncertainty over future high-level talks between the two countries.
Donald Trump's latest threat to impose an additional 100% tariff on Chinese goods is 'a typical example of US double standards', China's government has said.
A Commerce Ministry spokesperson also mentioned that China could introduce its own unspecified 'countermeasures' if the US President carries out his threat, adding it was 'not afraid' of a possible trade war.
On Friday, Trump responded to Beijing's tightened exports of rare earths by accusing China of 'becoming very hostile' and attempting to hold the world 'captive'. He also threatened to withdraw from a scheduled meeting with President Xi Jinping later this month.
Trump's comments rattled financial markets, with the S&P 500 share index closing down 2.7%, marking its steepest fall since April. The president's remarks have rekindled fears of a trade conflict between the US and China, escalating tensions that had somewhat eased following a previous agreement in May to drop triple-digit tariffs on each other's goods.
China's statements released by its Ministry echoed previous rhetoric during high-tension trade conflicts, where the US export restrictions on technology and chips were criticized. The Ministry defended China's own export controls on rare earths as necessary actions to secure both national and global safety.
'For a long time, the US has overstretched the concept of national security', the spokesperson said, criticizing the US's practices towards China. They emphasized that resorting to tariff threats is not a constructive way to engage with China and reiterated its position: 'We do not want a tariff war, but we are not afraid of one.'
Amid ever-increasing tensions, it's uncertain if the anticipated summit between Trump and Xi later this month will go ahead.
