China has hit back at accusations from the US that it is trying to hurt the world economy, as the trade war between the world’s two biggest economies appeared to re-escalate, amped up by aggressive rhetoric on both sides.
China’s commerce ministry said on Tuesday that the US was “threatening to intimidate” with the prospect of new tariffs on Chinese exports, “which is not the right way to get along with China”. Its spokesperson said that China would “fight to the end” in trade talks.
The comments came shortly after the US treasury secretary, Scott Bessent, said China wanted to “to pull everybody else down with them” by damaging the world economy.
It follows the US and China starting to charge each other increased port fees on cargo ships, increasing trade tensions.
The US announced plans earlier this year to begin charging duties on China-linked ships to counter what it says are unfair maritime trade practices. Those tariffs – and retaliatory charges from China – came into effect on Tuesday.
State media said that Chinese-built ships would be exempt from the new measures.
The commerce ministry said on Monday that it had notified the US about the rare earth export controls Beijing announced last week in advance, contradicting comments made by the US trade representative, Jamieson Greer, over the weekend that the US had not been warned.
Last week China increased its restrictions on rare earths and related technologies, citing national security concerns. China’s near monopoly on the supply chain of critical minerals needed for global manufacturing has been a sticking point in trade negotiations between Washington and Beijing.
Donald Trump responded to the rare earths measure by announcing plans to impose tariffs of 100% on Chinese exports, effective from 1 November. Trump’s announcement prompted threats of retaliation from China.
Tariffs between the US and China have been largely paused until 10 November as both sides try to reach a trade agreement.
As of 25 September, average US tariffs on Chinese imports reached 58%, while Chinese tariffs reached 33%, according to analysis by the Peterson Institute for International Economics.
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However, on Tuesday new US tariffs on imported timber, kitchen cabinets and upholstered furniture came into effect. Many of these goods come from China.
Bessent told the Financial Times: “If they want to slow down the global economy, they will be hurt the most.”
Despite the fiery rhetoric, China said the US and China held “working level” talks on Monday.
Trump had been expected to meet Xi Jinping, China’s president, later this month at the Asia-Pacific Economic Cooperation summit in Seoul.
The barbs and tariffs exchanged in recent days cast doubt on the prospects of this meeting, although Bessent said on Monday he believed it would still happen. China has never officially confirmed plans of the Trump-Xi meeting.
