China criticizes Trump’s threat to impose 100 percent tariffs, defends restrictions on rare earth elements | Trade war news

Beijing says it will not back down in the face of threats, and urges the United States to resolve differences through negotiations.

China has described US President Donald Trump’s new tariffs on Chinese goods as hypocritical, defending the restrictions it imposed on exports of rare earth elements and equipment, while stopping short of imposing additional duties on US imports.

In a lengthy statement on Sunday, China’s Ministry of Commerce said the export controls on rare earth elements, which Trump called “sudden” and “extremely aggressive,” were imposed in response to a series of U.S. actions since trade talks held in Madrid, Spain, last month.

“China’s position is consistent,” the ministry said in a statement posted online. “We don’t want a tariff war, but we’re not afraid of it.”

Trump on Friday retaliated against China’s restrictions on rare earth exports by announcing a… 100 percent tariff Regarding Chinese exports to the United States and new export controls on critical software, effective November 1.

Beijing cited Washington’s decision to blacklist Chinese companies and impose port fees on ships linked to China as examples of what it called “provocative and destructive” actions, and called Trump’s threat of tariffs “a typical example of double standards.”

“These actions have seriously harmed China’s interests and undermined the atmosphere of bilateral economic and trade talks. China firmly opposes them,” the ministry said.

In contrast to previous rounds of tit-for-tat tariffs, China has not yet announced any countermeasures.

Rare earths have been a major sticking point in recent trade negotiations between the two superpowers. They are essential for manufacturing everything from smartphones and electric vehicles to military hardware and renewable energy technology.

China dominates the global production and processing of these materials. On Thursday, it announced new controls on the export of technologies used in mining and processing important minerals.

Renewed trade tensions between the world’s two largest economies also threaten to derail a potential summit between Trump and Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation summit in South Korea later this month. This could have been their first direct meeting since Trump returned to power in January.

The dispute also shook global markets, sending shares of major technology companies lower and unsettling companies that rely on China’s dominance in rare earth processing.

Meanwhile, Taiwan’s Ministry of Economy said on Sunday that China’s recent restrictions on exports of rare earth elements are unlikely to affect the semiconductor industry.

“The rare earth elements covered by the expanded ban are different from those required in semiconductor operations in Taiwan, so no significant impact on chip manufacturing is expected at this time,” the ministry said.

Taiwan, home to chip giant TSMC, said it gets most of its rare earth products from Europe, the United States and Japan.