🔗 Share this article

Donald Trump’s latest ultimatum to introduce an further full import duty on products from China has been labeled a “classic case” of American hypocrisy, per the Chinese government.

A official from China’s Commerce Ministry also stated that the nation could enact its own unspecified “retaliatory steps” if the White House occupant carries out his threat, noting that the country was “not afraid” of a looming trade war.

Last Friday, Donald Trump retaliated at Beijing’s move to tighten its rules for foreign shipments of rare earths, charging the Chinese leadership of “adopting a confrontational stance” and attempting to hold the world “captive”.

Furthermore, he threatened to cancel a scheduled talks with Chinese leader Xi, which was set for a summit in South Korea before the month ends.

Trump’s comments on Friday shook financial markets, with the S&P 500 falling by 2.7%, marking its biggest drop since earlier this year.

These statements renewed concerns of a commercial dispute between the two economic giants.

In May, the respective governments had consented to drop significant levies on each other’s imports, which had raised the prospect of trade halting between the two countries.

As a result, American import duties on products from China incurring an additional 30% levy compared with the start of the year, while items from the United States entering the country incur a ten percent duty.

China’s latest remarks – published by the relevant government department in the format of formal replies to press queries – mirrored language from the peak of the recent trade conflict.

They criticised US export restrictions on semiconductors and chips while supporting the country’s own restrictions on exports on key elements as “normal actions” to protect state interests and that of all nations.

The official said that for “an extended period”, the America had “overstretched the concept of state security, exploited foreign shipment regulations and “enforced” discriminatory practices against the Chinese nation.

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

“Beijing’s stance” on a trade conflict has always been unchanging: we are not seeking one, but we are not afraid of one.”

Recently, Beijing declared it was strengthening export controls on key elements and further resources essential to high-technology production.

The action was viewed as a important measure, as the nation processes about 90% of the world’s rare earths, which are employed in items such as solar panels and smartphones.

The recent comments from the US and China are being viewed by some as a means of enhancing bargaining power prior to forthcoming discussions.

Remains uncertain whether a summit between the former president and China’s leader, planned at a summit in South Korea later this month, will go ahead.