On Monday, China accused the United States of "seriously violating" the trade agreement established in May and pledged to implement "strong and resolute measures" to safeguard its interests. This Geneva agreement was intended to mitigate the escalating trade tariffs, some of which had surged to 145%. However, tensions have flared again after President Trump alleged on Friday that China had "totally violated" the agreement, pointing to sluggish rare earth exports as evidence.
In retaliation, China's Ministry of Commerce criticized the United States for imposing "discriminatory and restrictive measures" that undermine the agreement. These include actions against Huawei, such as halting sales of chip design software, and the cancelation of visas for Chinese students. Despite this, China has adhered to its rare earth export policy, albeit at a slow pace of approval, raising concerns among U.S. officials about potential manufacturing disruptions.
According to the ministry, "The U.S. has unilaterally provoked new trade frictions." President Trump expressed a desire to hold a conversation with President Xi to discuss the matter, though no date has been established yet for such a call.
