Beijing Slams America of ‘Hypocritical Policies’ Regarding Trade Levy Warning

Donald Trump’s newest warning to introduce an extra full import duty on Chinese goods has been described as a “prime illustration” of United States’ contradictory behavior, as stated by the Chinese government.

A official from China’s Commerce Ministry additionally remarked that China could implement its own unspecified “retaliatory steps” if the White House occupant follows through on his threat, noting that the country was “not afraid” of a looming trade war.

Last Friday, Trump responded at Beijing’s move to reinforce its policies for exports of rare earth minerals, accusing Beijing of “turning aggressive” and attempting to hold the international market “under its control”.

Additionally, he vowed to withdraw from a arranged summit with Chinese leader President Xi, which was expected to take place during a conference in the Republic of Korea later this month.

His statements on last Friday unsettled stock exchanges, with the S&P 500 falling by 2.7%, marking its biggest drop since April.

The president’s words renewed concerns of a trade war between the two economic giants.

In May, the two sides had reached an agreement to remove significant levies on each other’s products, which had created the possibility of bilateral trade stopping between the economic powers.

As a result, American import duties on products from China facing an added thirty percent tariff compared with the start of the year, while US goods entering China face a import levy.

The most recent comments from China – issued by the Commerce Ministry in the form of written responses to journalist’s questions – mirrored language from the height of the ongoing trade dispute.

Officials denounced United States controls on chips and semi-conductors while defending the country’s own overseas sale regulations on rare earth minerals as “routine measures” to safeguard state interests and that of every country.

The spokesperson stated that for “a long time”, the United States had “overstretched the concept of domestic safety, abused foreign shipment regulations and “adopted discriminatory practices against the Chinese nation.

“Using” trade levy ultimatums is not the correct approach to interact with China,” the official stated.

“China’s position on a tariff war has remained consistent: we wish to avoid one, but we are unafraid of one.”

The previous week, China declared it was strengthening export controls on rare earths and other materials vital for high-technology production.

The action was viewed as a important measure, as the nation processes about ninety percent of the world’s rare earths, which are used in products such as photovoltaic modules and smartphones.

New remarks from the US and China are being seen by analysts as a means of bolstering negotiating stances in preparation for future trade talks.

Remains uncertain whether a talks between Donald Trump and Xi Jinping, expected at a high-level meeting in Seoul later this month, will still proceed.

Arthur Hunter
Arthur Hunter

A seasoned financial analyst with over 15 years of experience in UK markets, specializing in wealth management and sustainable investing.