China Accuses US of ‘Contradictory Stances’ Regarding Trade Levy Warning

Donald Trump’s most recent threat to enforce an further 100% tariff on Chinese goods has been labeled a “prime illustration” of United States’ contradictory behavior, as stated by the Chinese government.

A official from China’s Commerce Ministry also stated that China could implement its own unrevealed “retaliatory steps” if the American leader executes his threat, emphasizing that the country was “unafraid” of a looming trade conflict.

Last Friday, Donald Trump retaliated at Beijing’s move to strengthen its rules for exports of rare earths, accusing Beijing of “adopting a confrontational stance” and attempting to hold the global community “under its control”.

Furthermore, he warned to withdraw from a arranged meeting with Beijing’s head of state Xi, which was set for a meeting in Seoul in the coming weeks.

The former president’s remarks on Friday unsettled stock exchanges, with the S&P 500 share index dropping over two and a half percent, marking its biggest drop since earlier this year.

These statements revived apprehensions of a trade conflict between the two economic giants.

Earlier this year, the respective governments had reached an agreement to remove high import duties on each other’s products, which had led to concerns of trade halting between the two countries.

This left, American import duties on Chinese goods facing an added 30% levy compared with the start of the year, while American products entering the Chinese market face a ten percent duty.

Beijing’s recent statements – released by the relevant government department in the format of formal replies to press queries – echoed language from the peak of the ongoing trade dispute.

They criticised United States controls on semiconductors and chips while supporting China’s own export controls on rare earth minerals as “routine measures” to ensure national security and that of the global community.

The official stated that for “a long time”, the United States had “broadened the definition” of domestic safety, exploited overseas sale restrictions and “enforced” discriminatory practices against the Chinese nation.

“Using” trade levy ultimatums is not the right way to deal with the Chinese government,” their representative commented.

“Beijing’s stance” on a import duty dispute has remained unchanging: we wish to avoid one, but we are unafraid of one.”

Last week, China announced it was strengthening export controls on key elements and additional substances critical for cutting-edge industry.

This move was regarded as a significant step, as the nation processes about the vast majority of the global rare earth supply, which are utilized in products such as renewable energy components and mobile phones.

New remarks from the US and China are being viewed by some as a method of bolstering negotiating stances ahead of future trade talks.

It is unclear whether a summit between the former president and China’s leader, scheduled at a high-level meeting in South Korea before month’s end, will go ahead.