China has officially accused the United States of “provoking new economic and trade frictions” in response to US President Donald Trump's claims that Beijing violated a trade truce established last month. This truce was intended to pause the ongoing tariff war between the two nations. In a statement released on Monday, the Chinese Commerce Ministry asserted that China was “strictly implementing” the agreements reached during the trade talks, while simultaneously blaming the US for actions that “seriously undermine” the accord.
The Chinese statement emphasized, “The United States has been unilaterally provoking new economic and trade frictions, exacerbating the uncertainty and instability of bilateral economic and trade relations.” It warned that if the US continues to act against China’s interests, the nation will take “resolute and forceful measures to safeguard its legitimate rights and interests.” This back-and-forth highlights a significant escalation in tensions between the two countries, just weeks after they reached an unexpected truce in Geneva.
President Trump made headlines on Friday when he stated that China had “TOTALLY VIOLATED ITS AGREEMENT WITH US.” In a post on Truth Social, he claimed to have negotiated a quick deal with China to prevent a dire situation, adding with frustration, “So much for being Mr. NICE GUY!” This exchange underscores the fragile state of affairs following the Geneva agreement, which had notably reduced the extensive tariffs imposed by both nations in April.
Following the trade truce, the two countries were given a 90-day window to negotiate a more comprehensive deal. However, reports suggest that the talks have become “stalled,” with US officials indicating that direct involvement from Trump and Chinese leader Xi Jinping is necessary to revive negotiations.
A central issue in the current dispute revolves around Beijing’s export controls on rare earth minerals, which were enacted as a response to Trump’s “reciprocal” tariffs on Chinese goods. After the Geneva discussions, US officials anticipated that China would ease these export restrictions. However, as these restrictions remain in place, dissatisfaction within the Trump administration has grown, leading to a series of retaliatory measures against China.
Last month, Beijing accused the US of “undermining” the consensus reached in Geneva after Washington warned companies against utilizing AI chips produced by Huawei, a major Chinese tech firm. The US further escalated tensions by moving to limit critical technology sales to China and restricting the number of Chinese students studying in the United States, revealing that their competition extends beyond mere trade issues.
In response to these actions, the Chinese Commerce Ministry criticized the US for introducing a series of discriminatory measures following the Geneva talks. These include guidelines for AI chip export controls, halting the sale of chip design software, and revoking Chinese student visas. The ongoing trade frictions are not only impacting diplomatic relations but are also affecting economic conditions at home, as evidenced by a recent report indicating that China’s manufacturing activity shrank for a second consecutive month in May.
Trump administration officials are particularly focused on China's export controls on rare earths, viewing them as a crucial factor in China's compliance with the Geneva agreement. This deal was aimed at reducing mutual tariffs that had escalated to over 100% and included an understanding that China would “suspend or remove” non-tariff countermeasures imposed since April 2. However, despite these agreements, China’s system remains unchanged, requiring government approval for each shipment of rare earth minerals, thus maintaining tight control over a supply chain that it dominates globally.
US Treasury Secretary Scott Bessent expressed concerns during a CBS interview, stating that China is “withholding some of the products that they agreed to release” in Geneva. He speculated that this could be a glitch or intentional and mentioned that the issue would likely be resolved when Trump and Xi hold a conversation, which he believes will occur “very soon.”
China has defended its export control practices, asserting they are “in line with international practices” and not targeted at specific countries. During a press briefing, a spokesperson for China’s Ministry of Foreign Affairs expressed willingness to enhance dialogue and cooperation regarding export controls with relevant nations.
Former US Ambassador to China, Nicholas Burns, stated that Beijing has been “difficult” in negotiations, particularly regarding rare earths, and has not fulfilled its commitments made during the Geneva meeting. He remarked, “A lot of this is on China – China has been the most disruptive force in global trade over the last 25 to 30 years,” emphasizing the need for China to demonstrate responsibility as a trading partner to the US.
