Trump threatens to cancel meeting with Xi

President Donald Trump has lashed out at China after the country tightened its rules on rare earth exports and launched an investigation into a major US technology company.

In his social media post, Trump accused Beijing of trying to “keep the world in captivity” and said there was no longer a reason to meet with President Xi Jinping later this month, as expected.

He also threatened a “massive” increase in tariffs on Chinese goods; This indicates the return of renewed trade tensions between the two economic giants.

Financial markets fell following these statements; The S&P 500 lost nearly 1.4% in morning trading in New York.