China Accuses US of ‘Contradictory Stances’ Over Import Duty Ultimatum

Trump’s newest threat to introduce an further full import duty on products from China has been labeled a “typical example” of United States’ contradictory behavior, according to the Chinese government.

A Commerce Ministry spokesperson additionally remarked that the nation could implement its own unrevealed “retaliatory steps” if the White House occupant executes his warning, adding that the country was “unafraid” of a potential trade war.

This past Friday, Trump retaliated at China’s decision to strengthen its regulations for foreign shipments of rare earth minerals, accusing China of “adopting a confrontational stance” and attempting to hold the world “captive”.

He also warned to cancel a scheduled summit with Chinese leader President Xi, which was expected to take place during a conference in the Republic of Korea later this month.

His statements on that day rattled global markets, with the benchmark US stock index dropping over two and a half percent, marking its largest decline since earlier this year.

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

In May, the respective governments had reached an agreement to drop significant levies on each other’s goods, which had led to concerns of trade halting between the economic powers.

This left, American import duties on Chinese imports facing an added import tax compared with the start of the year, while US goods entering the Chinese market are subject to a 10% tariff.

China’s latest remarks – released by the Commerce Ministry in the form of official answers to media inquiries – echoed rhetoric from the peak of the recent trade conflict.

The remarks condemned United States controls on electronic components while justifying China’s own overseas sale regulations on rare earths as “routine measures” to safeguard national security and that of the global community.

The spokesperson said that for “a long time”, the America had “broadened the definition” of domestic safety, abused export control measures and “adopted biased policies against China.

“Turning to” trade levy ultimatums is not the correct approach to deal with the Chinese government,” the spokesperson said.

“The nation’s view” on a trade conflict has remained consistent: we do not want one, but we are not afraid of one.”

Last week, the Chinese government declared it was tightening foreign shipment restrictions on key elements and other materials critical for advanced tech manufacturing.

The action was viewed as a important measure, as the state handles about 90% of the planet’s critical minerals, which are employed in products such as renewable energy components and handheld devices.

New remarks from Washington and Beijing are being seen by observers as a strategy of strengthening positions in preparation for upcoming negotiations.

It is unclear whether a talks between Trump and Xi Jinping, scheduled at a summit in South Korea in the coming weeks, will take place as planned.

Tamara Swanson
Tamara Swanson

Elena Vance is a seasoned financial analyst with over 15 years of experience in investment banking and wealth management, specializing in UK markets.