China blames US for raising trade tensions, defends rare earth curbs

China called US President Donald Trump’s latest tariffs on Chinese goods hypocritical on Oct 12, and defended its curbs on exports of rare earth elements and equipment, but stopped short of imposing new levies on US products.

- 

A container ship at the port in Qingdao in China's eastern Shandong province on Oct 9. US President Donald Trump announced an additional 100 per cent tariff on China on Oct 10, reigniting his trade war with Beijing in a row over export curbs on rare earth minerals. The American leader's move threatens to derail a summit with Chinese President Xi Jinping tentatively scheduled for late October.

(AFP)

Mr Trump on Oct 10 responded to Beijing’s most recent export controls by imposing additional tariffs of 100 per cent on China’s US-bound exports, along with new export controls on critical software by Nov1.

The revived trade tensions have rattled Wall Street, sending Big Tech shares tumbling, worried foreign companies dependent on China’s production of processed rare earths and rare earth magnets, and could derail a summit between Mr Trump and Chinese President Xi Jinping tentatively scheduled for later in October.

The Chinese Commerce Ministry’s statement on Oct 12 was Beijing's first direct response to Mr Trump’s lengthy Truth Social post on Oct 10, where he accused Beijing of suddenly raising trade tensions after an uneasy truce was reached six months ago between the world’s two-largest economies, allowing them to trade goods without sky-high tariff rates.

“Our relationship with China over the past six months has been a very good one, thereby making this move on trade an even more surprising one,” Mr Trump said.