Chinese Government Condemns US of ‘Contradictory Stances’ Regarding Trade Levy Warning
Donald Trump’s newest warning to introduce an additional full import duty on items imported from China has been called a “prime illustration” of United States’ contradictory behavior, as stated by the Chinese government.
A official from China’s Commerce Ministry further commented that the nation could enact its own unspecified “responsive actions” if the White House occupant executes his warning, adding that the country was “not afraid” of a looming trade war.
On Friday, Trump responded at Beijing’s move to reinforce its policies for foreign shipments of critical elements, accusing Beijing of “turning aggressive” and attempting to hold the international market “under its control”.
Furthermore, he threatened to withdraw from a scheduled talks with Chinese leader Xi Jinping, which was arranged for a conference in South Korea in the coming weeks.
His statements on that day unsettled financial markets, with the S&P 500 dropping nearly three percent, marking its largest decline since last spring.
His comments reignited concerns of a commercial dispute between the US and China.
This past spring, the two sides had reached an agreement to drop significant levies on each other’s products, which had led to concerns of bilateral trade stopping between the economic powers.
This left, American import duties on Chinese imports incurring an added import tax compared with the year’s onset, while American products entering China incur a 10% tariff.
The most recent comments from China – issued by the relevant government department in the manner of written responses to press queries – reflected rhetoric from the height of the ongoing trade dispute.
The remarks condemned American limits on exports on semiconductors and chips while defending China’s own restrictions on exports on key elements as “normal actions” to protect domestic safety and that of all nations.
The spokesperson said that for “many years”, the United States had “expanded the interpretation” of national security, abused export control measures and “adopted discriminatory practices against the Chinese nation.
“Resorting to import duty warnings is not the right way to interact with Beijing,” the spokesperson commented.
“China’s position on a tariff war has remained consistent: we are not seeking one, but we are unafraid of one.”
The previous week, Beijing announced it was tightening overseas sale regulations on key elements and additional substances vital for high-technology production.
This was seen as a significant step, as the country processes about the vast majority of the world’s rare earths, which are utilized in goods such as renewable energy components and smartphones.
New remarks from both governments are being viewed by some as a strategy of bolstering negotiating stances prior to upcoming negotiations.
Is not yet known whether a meeting between Donald Trump and President Xi, expected at a high-level meeting in South Korea in the coming weeks, will go ahead.