China has denounced U.S. President Donald Trump’s latest 100% tariffs on Chinese goods as “hypocritical,” defending its recent export restrictions on rare earth elements while refraining from imposing new retaliatory measures. The move, announced Friday, reignited trade tensions between the world’s two largest economies and rattled global markets, especially industries reliant on China’s dominance in rare earth production.
In its statement Sunday, China’s commerce ministry criticized Washington for “undermining the atmosphere” of trade cooperation, citing U.S. actions such as adding Chinese firms to a trade blacklist and imposing port fees on China-linked ships. Beijing emphasized that its export controls target military-sensitive materials, not general trade, and are “not export bans.” The ministry assured companies that exports for civilian use will be approved under general-purpose licenses.
Trump had earlier accused Beijing of reigniting trade hostilities after a six-month truce, while China countered that the U.S. had first escalated tensions through restrictive measures. Analysts suggest China’s decision to hold off on new tariffs indicates an attempt to leave room for negotiation ahead of a planned summit between Trump and Chinese President Xi Jinping later this month.
However, firms like Hutong Research warned that if Beijing continues to avoid matching Trump’s tariff hikes, it may reflect eroding confidence in his administration’s reliability. Meanwhile, China’s market regulator has intensified scrutiny of U.S. companies, launching antitrust probes into Nvidia and Qualcomm following their recent mergers and acquisitions.
As China seeks to stabilize trade relations, it reaffirmed its commitment to “compliant and lawful” exports, signaling a cautious but strategic approach amid a deepening U.S.-China economic confrontation.