Chinese Government Condemns United States of ‘Hypocritical Policies’ Over Trade Levy Warning

The former US president’s latest warning to enforce an extra complete levy on products from China has been labeled a “classic case” of United States’ contradictory behavior, per the Chinese government.

A representative of the ministry further commented that Beijing could introduce its own unspecified “retaliatory steps” if the American leader follows through on his threat, emphasizing that the country was “unafraid” of a potential commercial battle.

Last Friday, the former president responded at the Chinese government’s action to tighten its policies for exports of rare earth minerals, accusing Beijing of “becoming very hostile” and attempting to hold the world “under its control”.

Furthermore, he warned to pull out of a scheduled meeting with China’s President Xi, which was set for a meeting in South Korea in the coming weeks.

The former president’s remarks on that day unsettled stock exchanges, with the S&P 500 falling by 2.7%, marking its biggest drop since April.

These statements revived fears of a commercial dispute between the United States and China.

This past spring, the two sides had consented to eliminate triple-digit tariffs on each other’s goods, which had led to concerns of bilateral trade stopping between the two countries.

Consequently, US tariffs on Chinese imports facing an added thirty percent tariff compared with the start of the year, while US goods entering the country are subject to a 10% tariff.

The most recent comments from China – issued by the Commerce Ministry in the manner of formal replies to press queries – mirrored rhetoric from the zenith of the latest commercial tensions.

The remarks condemned American limits on exports on semiconductors and chips while defending Beijing’s export controls on key elements as “normal actions” to protect domestic safety and that of every country.

The official stated that for “a long time”, the US had “broadened the definition” of state security, misused export control measures and “implemented” unfair treatments against China.

“Resorting to trade levy ultimatums is not the correct approach to engage with the Chinese government,” the official commented.

“China’s position on a trade conflict has always been unchanging: we wish to avoid one, but we are not afraid of one.”

Recently, China announced it was strengthening overseas sale regulations on rare earths and additional substances essential to advanced tech manufacturing.

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

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

It is unclear whether a summit between Donald Trump and President Xi, expected at a conference in Seoul before month’s end, will go ahead.

Melissa Spears
Melissa Spears

A financial technology expert specializing in blockchain innovations and digital asset markets across Europe.