Beijing Slams US of ‘Hypocritical Policies’ Concerning Tariff Threat
Donald Trump’s most recent warning to introduce an additional full import duty on products from China has been called a “prime illustration” of United States’ contradictory behavior, as stated by the China’s leadership.
A official from China’s Commerce Ministry also stated that Beijing could introduce its own undisclosed “countermeasures” if the American leader carries out his threat, adding that the country was “unafraid” of a possible trade conflict.
Last Friday, Donald Trump hit back at China’s decision to reinforce its rules for foreign shipments of rare earth minerals, accusing the Chinese leadership of “turning aggressive” and attempting to hold the world “under its control”.
Additionally, he warned to withdraw from a planned talks with China’s President Xi, which was set for a conference in the Republic of Korea later this month.
His statements on that day shook financial markets, with the S&P 500 share index dropping 2.7%, marking its biggest drop since last spring.
These statements reignited concerns of a commercial dispute between the US and China.
Earlier this year, the two sides had agreed to drop significant levies on each other’s products, which had led to concerns of commerce ceasing between the two nations.
Consequently, American import duties on Chinese goods facing an extra import tax compared with the start of the year, while American products entering the Chinese market incur a import levy.
The most recent comments from China – issued by the Ministry of Commerce in the format of formal replies to media inquiries – mirrored language from the peak of the latest commercial tensions.
Officials denounced United States controls on electronic components while justifying Beijing’s overseas sale regulations on key elements as “normal actions” to safeguard national security and that of the global community.
The spokesperson stated that for “many years”, the America had “overstretched the concept of domestic safety, exploited overseas sale restrictions and “implemented” discriminatory practices against the Chinese nation.
“Using” import duty warnings is not the correct approach to interact with the Chinese government,” the official commented.
“China’s position on a import duty dispute has remained steady: we are not seeking one, but we are unafraid of one.”
Last week, China announced it was strengthening overseas sale regulations on rare earths and additional substances critical for high-technology production.
The action was viewed as a key move, as the country refines about the vast majority of the global rare earth supply, which are employed in products such as renewable energy components and handheld devices.
The recent comments from the US and China are being seen by some as a strategy of enhancing bargaining power in preparation for future trade talks.
It is unclear whether a meeting between the former president and Xi Jinping, scheduled at a summit in the Republic of Korea before month’s end, will go ahead.