Now China has also retaliated against US President Donald Trump’s imposition of 100 percent extra tariff on China. In response, China has given a stern warning that it gives importance to peace and dialogue, but if provoked, it will not back down and will take retaliatory action. China’s Commerce Ministry said in an online statement that our stand is clear. We don’t want a tariff war, but we’re not afraid of it either. The statement also said that if America remains adamant on its insistence, China will take strong steps to protect its interests. The ministry stressed the need for dialogue, but also made it clear that if tensions escalate, it will give a “strong response” to protect its economic interests.
This statement came two days after Trump’s threat, in which he had talked about increasing tariffs on imports from China by November 1. This threat was in response to China’s new rules, which ban the export of rare earths. These minerals are essential for many consumer and military products.
Controversy over rare earth
China is a big player in the global supply of these strategic minerals. He controls 70% of mining and 90% of processing. Under the new rules, foreign companies will have to obtain a special license to ship goods containing Chinese rare earths. The Trump administration considers it an economic weapon. Trump accused China of holding the world hostage and said that it is a threat not only to American companies but also to global security. This tension could derail the possible meeting between Trump and Chinese leader Xi Jinping, and the already stalled tariff war could start again.
China imposed port duty on America
China also hit back and said that it will impose port fees on American ships from next week. The ministry said that export licenses will be given only for legitimate civilian use, but these minerals also have military uses. China also said that the US has recently imposed several new restrictions, which include increasing export controls on Chinese companies. China also said that the US is imposing new port duties on Chinese ships, which will come into effect from Tuesday. In response, China has announced to impose similar duties on American ships.