China’s Commerce Ministry said on Monday it would not back down from the United States’ threat to impose new, higher tariffs and urged Washington to resolve trade issues with Beijing through dialogue.
“China’s position is consistent: We do not want a tariff war, but we are not afraid of one either,” the ministry said.
This was Beijing’s first official comment on US President Donald Trump’s threat to raise taxes on imports from China in response to China’s new restrictions on rare earth exports.
US Vice President J.D. Vance said on Monday that Washington remained “committed to protecting America’s economic livelihoods” and that the fact that China has “so much control over key US supplies” is “the definition of a national emergency” and therefore justifies the new tariffs.
“It will be a delicate game and a lot will depend on how the Chinese respond. If they respond in a very aggressive way, I guarantee you that the US president has many more solutions than China,” Vance told the American television network Fox News.
He added that if the Chinese side is “willing to be reasonable, Donald Trump is always willing to be a reasonable negotiator.”
“Frequently resorting to threats of high tariffs is not the right way to negotiate with China,” China’s Ministry of Commerce said, calling for all concerns to be resolved through dialogue.
The statement added that if “the US side stubbornly insists on its practice, China will certainly resolutely take appropriate measures to protect its legitimate rights and interests.”
Beijing and Washington have been exchanging accusations of violating the spirit of the trade truce by imposing new restrictions.
Trump recently announced on social media that China is becoming “very hostile” and is “holding the world captive” by restricting access to rare earth minerals.
A statement from China’s Ministry of Commerce said the US had imposed several new restrictions in recent weeks, including expanding the number of Chinese companies restricted from importing from the US.
The ministry said export permits would be issued for civilian use on rare earth exports.
The new regulations include a requirement that foreign companies obtain approval from the Chinese government to export products containing rare earths from China, regardless of where they are produced.
China mines about 70 percent of the world’s rare earths and controls about 90 percent of their processing, and access to these raw materials is a key sticking point in trade talks between Washington and Beijing.
