China has expressed its “firm rejection” of US assertions that it has breached a comprehensive tariffs agreement, as tensions between the two economic giants appear to be escalating again.
Last month, China and the US reached an agreement to reduce extraordinarily high tariffs on each other for a period of 90 days following discussions between senior officials in Geneva.
However, US officials accused China last week of not adhering to the agreement, with Commerce Secretary Howard Lutnick claiming on “Fox News” that Beijing was “slow-rolling” the deal.
In response, China stated that the US had “made false accusations and unreasonably claimed that China violated the consensus, which is seriously against the facts”.
The tariff dispute had nearly halted around $600 billion in bilateral trade prior to the discussions in Geneva.
US President Donald Trump remarked last week that China had “totally violated” the agreement, although he did not provide any specifics.
China’s commerce ministry asserted that it “has been steadfast in protecting its rights and interests and is sincere about implementing the consensus”.
It further stated that the US “has implemented numerous discriminatory measures against China” since the Geneva talks.
The ministry highlighted export restrictions on artificial intelligence chips, limitations on the sale of chip design software, and the revocation of Chinese student visas in the United States.
“We urge the US to meet China halfway, rectify its erroneous actions immediately, and collaboratively uphold the consensus established during the Geneva trade talks,” the ministry urged.
Should this not occur, “China will persist in taking robust measures to defend its legitimate rights and interests,” it concluded.
Prospects for a Trump-Xi call have been raised.
US officials have expressed frustration regarding what they perceive as China’s delay in approving export licenses for rare earth elements and other materials essential for manufacturing cars and chips.
Nevertheless, Washington’s Treasury Secretary Scott Bessent aimed to alleviate tensions, stating that both sides could organize a call between their respective leaders to address their disputes.
“I’m confident… this will be resolved” in a conversation between Trump and Chinese President Xi Jinping, Mr. Bessent remarked on CBS’s “Face the Nation”.
He noted, however, that China was “withholding some products they agreed to release,” including rare earth elements.
Regarding the timing of a Trump-Xi conversation, Mr. Bessent indicated: “I believe we will see something very soon.”
China has been less forthcoming, and the commerce ministry’s statement did not reference any upcoming discussions between the two leaders.
The Geneva agreement was described as “an important consensus reached by both sides based on mutual respect and equality, and its outcomes were achieved with great effort,” according to the ministry.
It cautioned the US against “pursuing its own course and continuing to harm China’s interests”.
