China has criticized the United States, accusing it of breaching their recent trade agreement and warning that it will take firm measures to protect its interests.
This latest dispute has dampened hopes for an immediate leadership call between U.S. President Donald Trump and Chinese President Xi Jinping, which Trump had proposed to advance bilateral negotiations.
In a statement issued on Monday, China’s Ministry of Commerce rejected Trump’s assertion that Beijing had violated the trade consensus reached in Geneva last month.
China accuses U.S. of discriminatory actions
The ministry accused the U.S. of unilateral and discriminatory actions, including the introduction of new AI chip export restrictions, curbs on chip design software sales to Chinese firms, and the revocation of visas for Chinese students.
Expressing frustration over Washington’s actions, the ministry declared that “If the U.S. insists on its own way and continues to damage China’s interests, China will continue to take resolute and forceful measures to safeguard its legitimate rights and interests.”
Furthermore, China accused the U.S. of violating the consensus reached during Trump and Xi’s last conversation on January 17, although it did not provide specific details on the alleged breaches.
The ministry called for an immediate correction of these policies, stating, “We urge the U.S. to work with China to immediately correct relevant wrong practices.”
Following the diplomatic clash, Asian stock markets experienced sharp declines, with Chinese stocks traded in Hong Kong falling by as much as 2.9%, the steepest drop in nearly two months. U.S. stock-index futures also declined, signaling uncertainty among investors regarding the future of global trade relations.
Geopolitical and Trade Strains Intensify
Beyond trade disputes, geopolitical tensions between the nations continue to escalate. Over the weekend, China’s Foreign Ministry condemned remarks by U.S. Defense Secretary Pete Hegseth, who described China as an imminent threat to Taiwan, a self-governed island Beijing claims as its own.
Meanwhile, Trump has accused Beijing of violating the tariff truce, but did not provide specific details. However, U.S. Trade Representative Jamieson Greer cited concerns that China had failed to accelerate exports of critical minerals essential for high-tech electronics.
Michael Hart, President of the American Chamber of Commerce in China, noted that China’s rare earth exports have been loosening their grip, yet at a pace that remains “slower than industry would like.”
In its official statement, China’s Commerce Ministry firmly rejected the accusations from Washington, maintaining that Beijing has sincerely upheld the trade consensus and that any claims of misconduct were baseless.
What you should know
- Trump’s latest comments came just one day after U.S. Treasury Secretary Scott Bessent confirmed that trade negotiations with China had stalled, suggesting that a high-level call between Trump and Xi may be necessary to break the deadlock.
- In May, Washington lowered tariffs imposed on goods from China from 145% to 30%, with Beijing’s retaliatory tariffs lowered from 125% to 10%.
- While the deal lasts 90 days, allowing US and Chinese negotiators to reach a more substantial agreement, tensions have since been ratcheting up between the two sides.
