Working groups between the commerce ministries of China and the US are continuing consultations amid threats by US President Donald Trump to impose an additional 100% tariff on Chinese goods, the Chinese Ministry of Commerce said.
“China and the US have maintained contacts through bilateral trade and economic consultations. Working-level talks were held yesterday“, a statement said, after reports that Beijing had rejected the US government's proposal to hold a phone call on China's tightening of export controls on rare earth metals. The move sparked a sharp reaction from the White House, which threatened additional tariffs.
According to the Commerce Ministry statement, China had previously stated its position on similar US intentions. "We would like to reiterate that the measures on rare earth metals and related products are legitimate actions taken by the Chinese government in accordance with laws and regulations to improve the national export control system," it said. "As a responsible major power, China has always resolutely safeguarded its national and overall international security." On October 9, China's Ministry of Commerce released several documents on tightening export controls on rare earth metals, related technologies and mining equipment. This angered US President Donald Trump, who the next day threatened Beijing with a 100% tariff increase and restrictions on software supplies starting on November 1 or earlier. This would bring the total US tariffs on Chinese goods to 130%.
According to data from the General Administration of Customs, China increased its rare earth exports by 12.6% year-on-year from January to September, reaching 48,350 tonnes. However, the value of shipments in the first nine months fell by 7.8% to $342.3 million.