Chinese Government Condemns US of ‘Contradictory Stances’ Regarding Trade Levy Warning

Trump’s latest ultimatum to impose an additional full import duty on products from China has been called a “typical example” of United States’ contradictory behavior, according to the China’s leadership.

A official from China’s Commerce Ministry also stated that China could enact its own unspecified “countermeasures” if the US President executes his pledge, emphasizing that the country was “fearless” of a looming commercial battle.

On Friday, Trump hit back at China’s decision to strengthen its regulations for foreign shipments of rare earths, charging Beijing of “adopting a confrontational stance” and attempting to hold the international market “captive”.

Additionally, he threatened to withdraw from a scheduled meeting with China’s President Xi, which was set for a summit in the Republic of Korea later this month.

His statements on Friday rattled financial markets, with the S&P 500 share index closing down over two and a half percent, marking its biggest drop since earlier this year.

His comments revived apprehensions of a commercial dispute between the two economic giants.

Earlier this year, the respective governments had reached an agreement to drop significant levies on each other’s goods, which had raised the prospect of bilateral trade stopping between the two countries.

As a result, US tariffs on products from China incurring an added 30% levy compared with the year’s onset, while items from the United States entering the country incur a import levy.

Beijing’s recent statements – released by the relevant government department in the format of formal replies to journalist’s questions – reflected language from the height of the ongoing trade dispute.

They criticised US export restrictions on electronic components while supporting China’s own export controls on rare earth minerals as “normal actions” to safeguard state interests and that of all nations.

The official stated that for “a long time”, the US had “broadened the definition” of state security, misused foreign shipment regulations and “implemented” biased policies against the Chinese nation.

“Turning to” tariff threats is not the correct approach to deal with the Chinese government,” the official stated.

“China’s position on a import duty dispute has always been unchanging: we do not want one, but we are fearless of one.”

The previous week, China revealed it was strengthening foreign shipment restrictions on rare earth minerals and additional substances critical for advanced tech manufacturing.

This move was regarded as a significant step, as the nation processes about the vast majority of the planet’s critical minerals, which are employed in products such as renewable energy components and handheld devices.

New remarks from both governments are being interpreted by some as a method of bolstering negotiating stances prior to forthcoming discussions.

It is unclear whether a meeting between the former president and Xi Jinping, planned at a conference in the Republic of Korea before month’s end, will take place as planned.