Amid rising tensions, China asserts it is adhering to trade agreements with the U.S., countering accusations from President Trump that it is not honoring the trade truce.
China Rebuts Trump's Claims Over Trade Truce Violations
China Rebuts Trump's Claims Over Trade Truce Violations
Beijing defends its commitment to trade agreements while accusing the U.S. of escalating tensions.
China's Ministry of Commerce issued a robust response on Monday to President Trump's accusations, stating that the United States has "severely undermined" their recently established trade truce. This rebuttal followed Trump's claims last week, where he charged China with breaching the terms of the 90-day agreement meant to alleviate mounting trade hostilities.
The truce, achieved last month in Geneva, involved a temporary rollback of tariffs and trade barriers to create room for further negotiations aimed at preventing an all-out trade conflict. In its statement, China dismissed Trump's social media criticisms as "baseless" and asserted that it has been diligently upholding its end of the bargain.
China accused the United States of introducing a variety of "discriminatory restrictive measures," including limitations on the sale of vital chip design software and restrictions that bar U.S. firms from engaging with Chinese tech powerhouse Huawei on artificial intelligence projects. Additionally, the Chinese government criticized the Trump administration's declaration to "aggressively revoke" the visas of Chinese students while intensifying scrutiny on all future visa applications from China and Hong Kong.
The statement highlighted that the U.S. has exacerbated tensions rather than reflect on its actions, claiming such practices have undermined the stability of bilateral economic relations. China warned of its intent to take necessary actions to protect its legitimate rights should the U.S. continue to affect Chinese interests adversely.
This escalating confrontation raises important questions about the sustainability of the trade agreement, especially within the 90-day framework. The U.S. has voiced concerns over its reliance on rare earth magnets, essential components in manufacturing sectors from automobiles to semiconductors. Notably, China holds a near monopoly on the processing of these crucial materials.
During a recent CNBC interview, U.S. trade representative Jamieson Greer mentioned that China appears to be "slow-rolling their compliance" with the agreed-upon terms, indicating that the supply of critical minerals has yet to reach expected levels.
The trade deal announced on May 12 momentarily eased hostilities, which had seen tariffs on Chinese imports rise to a staggering 145 percent, prompting retaliatory measures from China that saw its duties on American goods soar to 125 percent. Under the terms of the truce, tariffs were reduced to 30 percent for the U.S. and 10 percent for China in a bid to facilitate further negotiations.
As both nations engage in this high-stakes economic dance, the success of the trade truce and potential long-term resolutions remain hanging in the balance.
The truce, achieved last month in Geneva, involved a temporary rollback of tariffs and trade barriers to create room for further negotiations aimed at preventing an all-out trade conflict. In its statement, China dismissed Trump's social media criticisms as "baseless" and asserted that it has been diligently upholding its end of the bargain.
China accused the United States of introducing a variety of "discriminatory restrictive measures," including limitations on the sale of vital chip design software and restrictions that bar U.S. firms from engaging with Chinese tech powerhouse Huawei on artificial intelligence projects. Additionally, the Chinese government criticized the Trump administration's declaration to "aggressively revoke" the visas of Chinese students while intensifying scrutiny on all future visa applications from China and Hong Kong.
The statement highlighted that the U.S. has exacerbated tensions rather than reflect on its actions, claiming such practices have undermined the stability of bilateral economic relations. China warned of its intent to take necessary actions to protect its legitimate rights should the U.S. continue to affect Chinese interests adversely.
This escalating confrontation raises important questions about the sustainability of the trade agreement, especially within the 90-day framework. The U.S. has voiced concerns over its reliance on rare earth magnets, essential components in manufacturing sectors from automobiles to semiconductors. Notably, China holds a near monopoly on the processing of these crucial materials.
During a recent CNBC interview, U.S. trade representative Jamieson Greer mentioned that China appears to be "slow-rolling their compliance" with the agreed-upon terms, indicating that the supply of critical minerals has yet to reach expected levels.
The trade deal announced on May 12 momentarily eased hostilities, which had seen tariffs on Chinese imports rise to a staggering 145 percent, prompting retaliatory measures from China that saw its duties on American goods soar to 125 percent. Under the terms of the truce, tariffs were reduced to 30 percent for the U.S. and 10 percent for China in a bid to facilitate further negotiations.
As both nations engage in this high-stakes economic dance, the success of the trade truce and potential long-term resolutions remain hanging in the balance.
