Donald Trump's latest threat to impose an additional 100% tariff on Chinese goods is a typical example of US double standards, China's government has said.
A commerce ministry spokesperson also said China could introduce its own unspecified countermeasures if the US president carries out his threat, adding it was not afraid of a possible trade war.
On Friday, Trump hit back at Beijing's move to tighten its rules for rare earths exports, accusing it of becoming very hostile and trying to hold the world captive. He also threatened to pull out of a meeting with China's President Xi Jinping later this month.
However, on Sunday, Trump reassured, Don't worry about China, it will all be fine!.
Highly respected President Xi just had a bad moment. He doesn't want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!! Trump tweeted, without further elaboration.
Trump's comments on Friday rattled financial markets, with the S&P 500 share index closing down 2.7%, its steepest fall since April. Following Trump's remarks, the Shenzhen Component Index in mainland China dropped over 2.5%, while Hong Kong's Hang Seng declined around 3.5%.
The president's statements have reignited fears of a trade war between the US and China. In May, both countries had agreed to drop triple-digit tariffs on each other's goods, raising concerns about potential halts in trade.
This left US tariffs on Chinese goods facing an added 30% levy compared to the start of the year, while US goods entering China are subject to a 10% tariff.
China's response, issued by the commerce ministry in written answers to journalists, mirrored rhetoric from earlier trade conflicts. They criticized US export restrictions on chips and semi-conductors, defending their own export controls on rare earths as normal actions to protect national security.
The spokesperson asserted that the US has overstretched the concept of national security, abused export control measures and utilized discriminatory practices against China.
Resorting to tariff threats is not the right way to engage with China, the spokesperson stated. China's position on a tariff war has always been consistent: we do not want one, but we are not afraid of one.
Last week, China announced tightened export controls on rare earths and other materials essential for advanced technology manufacturing. This move is significant, as China processes approximately 90% of the world's rare earths, used in products like solar panels and smartphones.
The recent statements from both Washington and Beijing appear to be a strategic positioning ahead of impending trade negotiations.
It remains uncertain whether a scheduled meeting between Trump and Xi at an upcoming summit in South Korea will still take place.
