Beijing Slams United States of ‘Contradictory Stances’ Regarding Trade Levy Warning

The former US president’s newest ultimatum to impose an extra 100% tariff on items imported from China has been called a “classic case” of United States’ contradictory behavior, according to the Chinese government.

A representative of the ministry also stated that China could enact its own unrevealed “responsive actions” if the American leader follows through on his threat, noting that the country was “unafraid” of a potential commercial battle.

Last Friday, Trump retaliated at Beijing’s move to strengthen its rules for foreign shipments of rare earth minerals, accusing Beijing of “turning aggressive” and attempting to hold the global community “captive”.

Additionally, he threatened to cancel a planned summit with Beijing’s head of state Xi Jinping, which was expected to take place during a conference in the Republic of Korea before the month ends.

Trump’s comments on that day unsettled global markets, with the S&P 500 share index closing down over two and a half percent, marking its steepest fall since last spring.

The president’s words reignited apprehensions of a trade conflict between the two economic giants.

Earlier this year, the both nations had consented to eliminate triple-digit tariffs on each other’s imports, which had created the possibility of commerce ceasing between the economic powers.

Consequently, American import duties on Chinese goods incurring an added 30% levy compared with the start of the year, while US goods entering the country are subject to a 10% tariff.

China’s latest remarks – issued by the Ministry of Commerce in the form of written responses to press queries – reflected language from the zenith of the recent trade conflict.

The remarks condemned United States controls on semiconductors and chips while supporting Beijing’s export controls on rare earth minerals as “routine measures” to ensure state interests and that of all nations.

The official remarked that for “an extended period”, the US had “expanded the interpretation” of domestic safety, abused export control measures and “implemented” biased policies against Beijing.

“Turning to” import duty warnings is not the correct approach to deal with the Chinese government,” their representative stated.

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

Last week, the Chinese government revealed it was tightening export controls on rare earths and further resources critical for advanced tech manufacturing.

This was seen as a significant step, as the country refines about ninety percent of the global rare earth supply, which are employed in items such as renewable energy components and handheld devices.

Latest statements from both governments are being viewed by observers as a strategy of bolstering negotiating stances ahead of upcoming negotiations.

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

Rhonda Hall
Rhonda Hall

Lena Visser is a seasoned business consultant with over a decade of experience in digital transformation and strategic growth.