China accuses US of ‘double standards’ over tariff threat
The Chinese government said Donald Trump’s latest threat to impose additional 100 percent tariffs on Chinese goods was “a typical example of US double standards”.
The Commerce Department spokesman also said China could impose its own unspecified “countermeasures” if the US President follows through on his threat and is “not afraid” of a possible trade war.
Trump on Friday hit back at Beijing’s move to tighten its rules on rare earth exports, accusing China of being “very hostile” and trying to keep the world “in servitude.”
He also threatened to withdraw from a meeting with Chinese President Xi Jinping scheduled for later this month.
Trump’s statements on Friday Financial markets were shaken as the S&P 500 stock index fell 2.7%, its steepest decline since April.
The president’s words renewed fears of a trade war between the United States and China.
In May, the two sides agreed to reduce triple-digit tariffs on each other’s goods. This increased the possibility of a halt in trade between the two countries.
This left the U.S. with tariffs on Chinese goods facing an additional 30 percent tariff compared to the beginning of the year, while U.S. goods entering China also faced a 10 percent tariff.
China’s final remarks, published by the Ministry of Commerce in written responses to journalists’ questions, reflected the language at the height of the latest trade conflict.
They criticized US export restrictions on chips and semiconductors and defended China’s own export controls on rare earths as “normal actions” to protect national security and the security of all nations.
The spokesman said that “for a long time” the US had “overstretched the concept of national security, abused export control measures” and “adopted discriminatory practices against China”.
“Resorting to tariff threats is not the right way to engage with China,” the spokesman said.
“China’s stance on a tariff war has always been consistent: we don’t want one, but we don’t fear one either.”
Last week, China announces tightening export controls on rare earth elements and other materials critical to high-tech manufacturing.
This was seen as a significant move, as the country processes around 90% of the world’s rare earths, which are used in products such as solar panels and smartphones.
The latest comments from Washington and Beijing are seen by some as a way to strengthen positions ahead of future trade talks.
It is unclear whether the meeting between Donald Trump and Xi Jinping, expected to be held in South Korea at the end of this month, will go ahead.
