A representative of the Chinese Ministry emphasized that if Trump decides to carry out his threats, China may respond with appropriate measures. He noted that the country is not afraid of the consequences of a possible trade war. In response to the tightening of export rules for rare earth metals, Trump accused Beijing of "extreme hostility" and announced his intention to cancel the upcoming meeting with Chinese President Xi Jinping at the end of the month.
However, on Sunday, Trump wrote on his social media that there is no need to worry about China: "Everything will be fine!" He added that the esteemed Chairman Xi is going through difficult times and expressed a desire to help China rather than harm it, without going into details.
Trump's statements on Friday caused a sharp decline in financial markets: the S&P 500 index fell by 2.7%, marking the most significant drop since April. His words again raised concerns about the onset of a trade war between the two countries.
In May, both sides agreed to cancel three-digit tariffs on mutual goods, which increased the chances of restoring trade. However, tariffs on Chinese goods from the U.S. have risen by 30% since the beginning of the year, while a 10% tariff is in place on American goods imported into China.
China's response, published by the Ministry of Commerce in writing for journalists, reflects the rhetoric that has been heard during the recent trade conflict. China condemned U.S. restrictions on the export of chips and semiconductors and defended its measures to control the export of rare earth elements, calling them "normal actions" to ensure national security.
A ministry representative noted that for a long time, the U.S. has "overestimated the significance of the concept of national security" and applied discriminatory measures against China.
"Threats of imposing tariffs are not the best way to engage with China," he added. "China's position on the tariff war remains unchanged: we do not want war, but we are not afraid of it." Last week, China announced a tightening of control over the export of rare earth metals and other critical materials, which is an important step considering that the country processes about 90% of the world's rare earth metals used in products such as solar panels and smartphones.
Recent comments from both countries are seen as attempts to strengthen their positions ahead of upcoming trade negotiations. It remains unclear whether the meeting between Trump and Xi will take place at the summit in South Korea at the end of the month.
