In a back-and-forth over trade tensions, China refused to back down on Monday, demanding that US President Donald Trump retract his most recent warning of a 100 percent tariff and other export control measures that were announced over the weekend.
“On the matter of tariff wars and trade wars, China’s position remains consistent,” said a Commerce Ministry spokesperson.
“If you wish to fight, we shall fight to the end; if you wish to negotiate, our door remains open,” the spokesperson added.
After China tightened restrictions on rare earths, a crucial resource used in electronics, on Thursday, Trump threatened to impose tariffs on all Chinese imports into the United States in the most recent escalation of trade war between the two countries.
One industry that China controls is the mining and processing of rare earths. In addition to cars, they are necessary for a wide range of products, including robotics and military equipment.
Trump described the Chinese move as “out of the blue,” suggesting that it caught him off guard. He sounded more accommodative than before, stating in a Truth Social post on Sunday, “The U.S.A. wants to help China, not hurt it!!!” even if he did not remove the economic threat.
In a long rebuttal on Sunday, China’s Ministry of Commerce said that the US was “severely damaging the atmosphere of trade negotiations.”
In the trade war, both countries have taken advantage of various aspects of their trade relationship, such as the US’ limits on China’s imports of cutting-edge computer chips, China’s decision to stop buying American soybeans, and a tit-for-tat port charge exchange.
Trade between the nations is being impacted by retaliatory measures and uncertainties, according to economic indicators. Exports to the US have decreased for six consecutive months, with a 27 percent decrease in September compared to the same month last year, according to Chinese trade data released on Monday.
Fears of a repetition of the tit-for-tat tariff offence in the spring, when levies on Chinese and American imports reached levels comparable to trade embargoes, have been renewed by the actions between the two biggest economies in the world. This has shaken markets and unnerved global industries of production shocks.
In addition to raising concerns about whether the scheduled meeting between Chinese President Xi Jinping and Trump in South Korea at the end of the month will still happen, the renewed tensions also run the risk of undoing the progress made during months of trade negotiations.
US Treasury Secretary Scott Bessent told Fox News on Monday that he still anticipated the meeting, despite Trump’s suggestion that he would cancel it.