China Accuses United States of ‘Contradictory Stances’ Regarding Import Duty Ultimatum
The former US president’s latest warning to introduce an extra 100% tariff on items imported from China has been labeled a “prime illustration” of United States’ contradictory behavior, per the Chinese government.
A representative of the ministry also stated that Beijing could enact its own undisclosed “retaliatory steps” if the American leader carries out his pledge, emphasizing that the country was “fearless” of a potential trade war.
Last Friday, Trump hit back at Beijing’s move to tighten its rules for overseas sales of rare earths, charging Beijing of “adopting a confrontational stance” and attempting to hold the global community “under its control”.
Furthermore, he threatened to withdraw from a planned meeting with Beijing’s head of state Xi, which was set for a summit in South Korea later this month.
His statements on that day rattled stock exchanges, with the S&P 500 closing down nearly three percent, marking its largest decline since last spring.
The president’s words reignited fears of a trade war between the United States and China.
In May, the respective governments had consented to remove high import duties on each other’s goods, which had led to concerns of bilateral trade stopping between the economic powers.
As a result, United States levies on Chinese imports subject to an extra thirty percent tariff 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 Ministry of Commerce in the form of written responses to media inquiries – echoed terminology from the height of the recent trade conflict.
Officials denounced American limits on exports on chips and semi-conductors while justifying Beijing’s export controls on rare earth minerals as “routine measures” to protect domestic safety and that of every country.
Their representative stated that for “many years”, the America had “expanded the interpretation” of state security, abused overseas sale restrictions and “enforced” discriminatory practices against Beijing.
“Turning to” import duty warnings is not the right way to engage with China,” the spokesperson said.
“China’s position on a import duty dispute has consistently been steady: we are not seeking one, but we are unafraid of one.”
The previous week, the Chinese government announced it was tightening overseas sale regulations on key elements and further resources essential to cutting-edge industry.
This was seen as a important measure, as the state handles about 90% of the world’s rare earths, which are employed in items such as solar panels and smartphones.
The recent comments from Washington and Beijing are being viewed by some as a strategy of bolstering negotiating stances in preparation for future trade talks.
Is not yet known whether a talks between Donald Trump and China’s leader, scheduled at a summit in Seoul in the coming weeks, will take place as planned.