China accuses US of ‘seriously violating' trade truce, vows countermeasures

Daily News Egypt

2 days ago

China said on Monday the United States is 'seriously violating' a trade truce between the two countries, days after a similar accusation was levelled at Beijing by US President Donald Trump, signalling renewed tension between the economic powers, the Financial Times reported.
The Chinese Ministry of Commerce stated on Monday that Washington is 'seriously violating' the truce and pledged to 'take strict measures to defend its interests.'
The ministry added that the United States has imposed 'a series of discriminatory and restrictive measures in recent weeks, which undermined the trade agreement signed in Geneva, and harmed China's legitimate rights and interests.'
In the statement, the ministry threatened to continue 'taking strong and firm measures' to protect 'China's legitimate rights' if the United States insists on 'going its own way, and harming Chinese interests.'
'The United States has unilaterally provoked new trade frictions (…) and instead of reflecting on its actions, has made baseless accusations against us of violating the agreement,' the ministry continued.
Among the US measures cited in the statement were warnings against the global use of Huawei Technologies' chips, a halt on sales of chip design software to Chinese companies, and the cancellation of visas for Chinese students.
China and the United States had agreed during talks in Geneva in early May to an accord that would temporarily reduce mutual tariffs, which had reportedly risen as high as 145%.
Trump: China Violated the Agreement
Earlier on Friday, US President Donald Trump said China had 'completely violated' the agreement, as US officials have grown increasingly frustrated with the slow pace of rare earth metal exports across the Pacific since the 12 May agreement.
Trump told reporters he hoped to resolve the dispute via a telephone call with Chinese President Xi Jinping, an idea he has proposed several times in recent months but which has not yet materialised.
US officials had believed the 12 May agreement, which stemmed from the early May talks in Geneva, would ease Chinese export restrictions on rare earths that were revealed in early April. However, China has maintained its export system while slowly approving shipments to the United States, according to reports.
These vital metals are widely used in US automotive, electronics, and defence supply chains, and the slow pace of exports to the United States poses an increasing threat of work stoppages in the US manufacturing sector.
Under the agreement between China and the United States, both sides suspended most tariffs, a move welcomed by investors and businesses worldwide. However, since the Geneva accord, Beijing has continued its slow process for approving export licences for rare earths and other elements necessary for manufacturing cars and chips, among other items.
Earlier this week, the US administration took steps to cancel entry visas for Chinese students and also suspended the sale of some vital technologies to Chinese companies.
Subsequently, China urged the United States to end 'discriminatory restrictions' against it, calling for cooperation in maintaining the 'consensus' reached during the high-level talks in Geneva.