China Accuses United States of ‘Hypocritical Policies’ Regarding Import Duty Ultimatum

Donald Trump’s latest threat to introduce an extra full import duty on Chinese goods has been described as a “prime illustration” of United States’ contradictory behavior, per the Beijing administration.

A representative of the ministry also stated that Beijing could enact its own unrevealed “retaliatory steps” if the White House occupant carries out his threat, noting that the country was “not afraid” of a potential trade conflict.

This past Friday, Donald Trump responded at Beijing’s move to reinforce its policies for foreign shipments of rare earths, charging Beijing of “turning aggressive” and attempting to hold the world “hostage”.

Furthermore, he threatened to pull out of a arranged meeting with China’s President Xi, which was arranged for a meeting in Seoul before the month ends.

His statements on Friday unsettled financial markets, with the S&P 500 closing down 2.7%, marking its biggest drop since April.

His comments renewed concerns of a trade conflict between the two economic giants.

In May, the respective governments had reached an agreement to remove triple-digit tariffs on each other’s products, which had created the possibility of trade halting between the two countries.

Consequently, American import duties on products from China incurring an added import tax compared with the start of the year, while items from the United States entering the Chinese market are subject to a import levy.

China’s latest remarks – released by the Ministry of Commerce in the format of official answers to journalist’s questions – reflected terminology from the zenith of the latest commercial tensions.

They criticised American limits on exports on chips and semi-conductors while supporting Beijing’s restrictions on exports on rare earth minerals as “routine measures” to ensure domestic safety and that of the global community.

Their representative remarked that for “an extended period”, the America had “expanded the interpretation” of state security, exploited overseas sale restrictions and “enforced” discriminatory practices against Beijing.

“Resorting to import duty warnings is not the right way to deal with China,” their representative commented.

“China’s position on a import duty dispute has consistently been steady: we are not seeking one, but we are fearless of one.”

The previous week, Beijing revealed it was tightening export controls on rare earths and additional substances vital for high-technology production.

This move was regarded as a important measure, as the state handles about the vast majority of the world’s rare earths, which are employed in products such as photovoltaic modules and handheld devices.

New remarks from the US and China are being viewed by some as a method of strengthening positions prior to upcoming negotiations.

Remains uncertain whether a summit between Trump and China’s leader, scheduled at a summit in Seoul later this month, will take place as planned.