The US administration is trying to pressure China to engage in trade talks, while simultaneously threatening new tariffs and restrictions. Liu Pengyu, a spokesman for the Chinese Embassy in the United States, said that this cannot be the right approach to building relations with China.
He noted that the Chinese government's measures to control the export of rare earth metals are completely legal and in line with international practice. “China's position is consistent and clear. The US, on the other hand, demands negotiations, while simultaneously threatening high tariffs and introducing new restrictive measures. This is not the right approach to engage with China,” the diplomat stressed.
“Resolving economic and trade issues between China and the United States through dialogue and consultation based on the principles of equality, respect and mutual benefit is in the interests of both sides. China firmly opposes the US’s groundless accusations“, Liu Pengyu added.
Earlier, US Treasury Secretary Scott Besant said that China’s trade negotiator, Vice Minister of Commerce Li Chenggang, had threatened the US administration with global trade chaos if the decision on port fees for ships made in China came into effect. "He came to Washington uninvited and said, quote, 'China will cause global chaos if these port fees go into effect,'" Besant alleged.
US trade negotiator Jamison Greer also said the US administration expects China to drop its new export controls on rare earth metals and related technologies.
On October 9, China's Ministry of Commerce released two documents tightening export controls on rare earth metals and related technologies. In accordance with these documents, China expanded these restrictions to 12 of the 17 rare earth elements. In response on October 10, US President Donald Trump announced that the United States would increase tariffs on Chinese products by 100%, effective November 1 or earlier, and would also impose controls on software exports. He warned of possible restrictions on other goods, primarily aircraft parts, to China and signaled the possibility of canceling a meeting with Chinese President Xi Jinping on the sidelines of the APEC summit in the Republic of Korea in late October or early November. Combined US tariffs on Chinese goods could reach 130%.