China Criticizes U.S. Tariff Threats Amid Escalating Trade Tensions

China has condemned U.S. President Donald Trump's proposal to impose 100% tariffs on Chinese exports, attributing the deterioration of bilateral relations to recent U.S. actions, including placing Chinese companies on a trade blacklist. The Chinese Ministry of Commerce stated that since trade talks in Madrid last month, the U.S. has "continuously introduced a series of new restrictions against China," such as adding Chinese firms to a trade blacklist. The ministry emphasized China's consistent stance on tariff wars: "we do not want to fight, but we are not afraid to fight."

In response to China's recent export controls on rare earth minerals—essential for high-tech and military products—President Trump announced plans to impose "large scale" export controls on "virtually every product they make," including "all critical software," alongside the new tariffs. These measures are set to take effect on or before November 1. The Chinese Ministry of Commerce criticized the U.S. approach, stating, "Threatening to impose high tariffs at every turn is not the right way to engage with China." The ministry warned that if the U.S. persists, China will "resolutely take corresponding measures to safeguard its legitimate rights and interests."

China's recent actions include expanding export controls on rare earths and related technologies, as well as equipment and materials for battery production. Additionally, Beijing has launched an antitrust investigation into U.S. chipmaker Qualcomm and imposed fees on American-owned ships docking at Chinese ports. These measures appear to be strategic moves ahead of a potential meeting between President Trump and President Xi Jinping in South Korea. While Trump initially cast doubt on the meeting, he later indicated that it would likely proceed.

The Chinese government has sought to reassure global manufacturers, stating that the impact on supply chains would be "extremely limited" and that companies "need not worry," as applications for civilian use that comply with regulations would be approved. The Ministry of Commerce also accused the U.S. of "abusing export controls" and overstretching the concept of national security.

Analysts suggest that Beijing's recent measures are aimed at exerting leverage ahead of the proposed Xi-Trump meeting. Feng Chucheng, a founding partner at Hutong Research, noted that after the Madrid talks, both sides seemed aligned in avoiding escalation. However, the U.S. decision in September to tighten export controls on Chinese companies altered this dynamic. Yanmei Xie, a senior associate fellow with the Mercator Institute for China Studies, highlighted that while the U.S. has leverage on trade, China might have the "upper hand" regarding vulnerabilities in the corporate sector, given the significant presence of American companies like Apple and Tesla in China.