China Accuses United States of ‘Hypocritical Policies’ Regarding Trade Levy Warning

Trump’s newest threat to introduce an further complete levy on products from China has been described as a “typical example” of United States’ contradictory behavior, as stated by the Chinese government.

A official from China’s Commerce Ministry further commented that the nation could implement its own unrevealed “responsive actions” if the American leader executes his threat, adding that the country was “not afraid” of a potential commercial battle.

This past Friday, Trump hit back at China’s decision to strengthen its rules for overseas sales of critical elements, alleging Beijing of “becoming very hostile” and attempting to hold the global community “under its control”.

He also vowed to withdraw from a planned meeting with Chinese leader Xi Jinping, which was set for a conference in South Korea later this month.

His statements on that day rattled global markets, with the S&P 500 falling by nearly three percent, marking its steepest fall since April.

The president’s words renewed apprehensions 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 goods, which had raised the prospect of trade halting between the two countries.

As a result, American import duties on Chinese goods facing an extra import tax compared with the start of the year, while US goods entering the Chinese market are subject to a ten percent duty.

China’s latest remarks – published by the relevant government department in the form of formal replies to press queries – reflected rhetoric from the height of the latest commercial tensions.

They criticised American limits on exports on electronic components while defending Beijing’s overseas sale regulations on key elements as “normal actions” to protect state interests and that of every country.

The official stated that for “many years”, the US had “expanded the interpretation” of domestic safety, misused overseas sale restrictions and “adopted unfair treatments against Beijing.

“Using” import duty warnings is not the correct approach to deal with China,” the official said.

“China’s position on a tariff war has consistently been steady: we are not seeking one, but we are unafraid of one.”

The previous week, Beijing revealed it was strengthening foreign shipment restrictions on key elements and additional substances essential to high-technology production.

The action was viewed as a key move, as the state refines about the vast majority of the world’s rare earths, which are used in items such as renewable energy components and handheld devices.

New remarks from both governments are being viewed by observers as a strategy of enhancing bargaining power in preparation for forthcoming discussions.

Is not yet known whether a meeting between the former president and Xi Jinping, planned at a summit in Seoul later this month, will still proceed.