BEIJING\/HONG KONG
\nChina called U.S. President Donald Trump\u2019s latest tariffs on Chinese goods hypocritical on Sunday and defended its curbs on exports of rare earth elements and equipment, but stopped short of imposing new levies on U.S. products.
\nTrump on Friday responded to Beijing\u2019s most recent export controls by imposing additional tariffs of 100% on China\u2019s U.S.-bound exports, along with new export controls on critical software by November 1.
\nThe revived trade tensions have rattled Wall Street, sending Big Tech shares tumbling, worried foreign companies dependent on China\u2019s production of processed rare earths and rare earth magnets, and could derail a summit between Trump and Chinese President Xi Jinping tentatively scheduled for later this month.
\nRESPONDING TO TRUMP
\nThe Chinese commerce ministry\u2019s statement on Sunday was Beijing\u2019s first direct response to Trump\u2019s lengthy Truth Social post on Friday, where he accused Beijing of suddenly raising trade tensions after an uneasy truce was reached six months ago between the world\u2019s two largest economies, allowing them to trade goods without sky-high tariff rates.
\n\u201cOur 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,\u201d Trump said.
\nThe commerce ministry said in an equally lengthy statement that its export controls on rare-earth elements followed a series of U.S. measures since bilateral trade talks in Madrid last month.
\nBeijing cited the addition of Chinese companies to a U.S. trade blacklist and Washington\u2019s imposition of port fees on China-linked ships as examples.
\n\u201cThe U.S. actions have severely harmed China\u2019s interests and undermined the atmosphere of bilateral economic and trade talks, and China is resolutely opposed to them,\u201d the ministry said.
\nBeijing stopped short of explicitly connecting these U.S. actions to its export curbs on rare-earth elements, saying they were motivated by concern about these materials\u2019 military applications at a time of \u201cfrequent military conflicts\u201d.
\nIt also held off on announcing a corresponding levy on China-bound U.S. imports, unlike earlier in the year, when both superpowers progressively ratcheted up tariffs on each other until the U.S. rate was 145% while China\u2019s was 125%.
\n\u2018PATH FOR NEGOTIATIONS\u2019
\nChina\u2019s decision not to immediately respond in kind to Trump\u2019s opening salvo in this latest round of trade tensions could leave the door open for both countries to negotiate a de-escalation, analysts said.
\n\u201cBy clarifying the rationale behind its retaliatory measures, Beijing is also outlining a potential path forward for negotiations. The ball is now in the U.S. court,\u201d said Alfredo Montufar-Helu, managing director at strategic advisory firm GreenPoint.
\nBut Hutong Research said in a note on Saturday that if Beijing chooses not to respond to Trump\u2019s 100% tariff hike, it may signal that it no longer prioritises a long-term deal with him, reflecting diminished confidence in his ability to restrain hawks or stick to commitments.
\n\u201cKey watchpoints now: Whether Beijing moves to freeze or complicate the TikTok sale, opens new tab, given its political symbolism. Proceeding with the sale under current conditions would be seen as a major concession (from Beijing),\u201d the research firm said.
\nOther tools in Beijing\u2019s arsenal include regulatory action targeting U.S. companies. China\u2019s State Administration for Market Regulation (SAMR) said last month leading U.S. AI chip manufacturer Nvidia (NVDA.O), opens new tab violated the country\u2019s anti-monopoly law, during U.S.-China trade talks in Madrid.
\nThe market regulator on Friday announced an antitrust investigation into U.S. chip manufacturer Qualcomm over its June 2025 acquisition of Israeli chip designer Autotalks.
\nA few hours after the commerce ministry\u2019s response to Trump\u2019s post and tariff hike, SAMR said Qualcomm had completed the acquisition without informing the regulator, adding that the U.S. firm had acknowledged this.
\n\u201cBased on clear facts and conclusive evidence, our bureau lawfully initiated an investigation into Qualcomm\u2019s unlawful…acquisition of Autotalks,\u201d SAMR said.
\nCHINA SAYS EXPORT CONTROLS ARE NOT EXPORT BANS
\nThe commerce ministry also countered Trump\u2019s narrative that China was using its dominance in processed rare earths and rare earth magnets to attack all countries, not just the U.S.
\n\u201cWe have been contacted by other Countries who are extremely angry at this great trade hostility, which came out of nowhere,\u201d Trump said on Friday on Truth Social.
\nChina produces over 90% of the world\u2019s processed rare earths and rare earth magnets. The 17 rare earths are vital materials in products ranging from electric vehicles to aircraft engines and military radars.
\nExports of 12 of them are restricted after China\u2019s commerce ministry on Thursday added five – holmium, erbium, thulium, europium and ytterbium – along with related materials.
\nThe commerce ministry statement on Sunday sought to reassure foreign companies spooked by the latest export curbs, promising to promote compliant trade by granting general-purpose licenses and license exemptions.
\n\u201cChina\u2019s export controls are not export bans,\u201d it said. \u201cAny export applications for civilian use that comply with regulations will be approved, and relevant enterprises need not worry.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
BEIJING\/HONG KONG China called U.S. President Donald Trump\u2019s latest tariffs on Chinese goods hypocritical on Sunday and defended its curbs on exports of rare earth elements and equipment, but stopped short of imposing new levies on U.S. products. Trump on Friday responded to Beijing\u2019s most recent export controls by imposing additional tariffs of 100% on […]<\/p>\n","protected":false},"author":2,"featured_media":508282,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":{"0":"post-508262","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"yoast_head":"\n