China asserted that the U.S. should cease these threats and called for further negotiations on outstanding issues to reach a trade agreement, in response to the latest actions taken by President Donald Trump against it.
In a statement issued on Sunday, the Chinese Ministry of Commerce indicated that the recent trade measures taken by China were necessary and defensive. It also confirmed that Beijing would take reciprocal measures to protect its rights if the U.S. continued its actions.
American Escalation Involving Tariffs and Critical Software
Trump announced on Friday the imposition of an additional 100% tariff on China, along with restrictions on the export of “any and all critical software” starting from November 1, just hours after he threatened to cancel a meeting with Chinese leader Xi Jinping.
This followed China’s imposition of new tariffs on American ships and the initiation of an antitrust investigation against Qualcomm, in addition to revealing new restrictions on its exports of rare earth minerals and other critical materials.
The Chinese Ministry of Commerce stated, “The threat of high tariffs at every turn is not the right way to deal with China.” It added: “China urges the United States to correct its wrong practices as soon as possible.”
Last week, China announced new broad restrictions on its exports of rare earth minerals and other critical materials.
According to what was announced, foreign exporters of goods containing even trace amounts of rare earth minerals from China will need to obtain export licenses based on national security considerations. Additionally, certain equipment and technologies for processing rare earth minerals and manufacturing magnets will also be subject to restrictions.
Limited Impact on Supply Chains
The Ministry of Commerce stated on Sunday that the Chinese export controls do not constitute a ban on exports, and applications that comply with the regulations will be approved. It also noted that it had informed the relevant countries and regions prior to announcing these measures through a bilateral dialogue mechanism.
The ministry clarified that it conducted a comprehensive assessment of the potential impact of these measures on industrial and supply chains and is convinced that the impact will be very limited. It affirmed its readiness to enhance dialogue and exchange regarding export controls with other countries to better maintain the security and stability of global industrial and supply chains.
