In a continuation of their escalating trade tensions, China expressed discontent with the United States on Monday, criticizing several American actions that allegedly undermine Chinese interests. Among the issues raised were new export control guidelines on artificial intelligence chips, restrictions on chip design software sales to China, and the intention to revoke Chinese student visas. The Chinese Commerce Ministry, in its statement, emphasized that these actions violate the understanding reached in a joint statement meant to reduce recent hefty tariffs and restart trade talks between the two economic giants.
The recent temporary easing of trade disputes between President Donald Trump’s administration and Beijing did little to address deep-rooted conflicts. Monday’s statement from the Chinese government highlighted how easily such compromises could evolve into new conflicts. The initial accord, which has a 90-day lifespan, was intended to allow negotiators from both nations to work on reaching broader agreements. Despite this pause, tariffs remain higher than before, unsettling businesses and investors due to the uncertainty about the temporary truce’s longevity.
U.S. Trade Representative Jamieson Greer confirmed that the U.S. had agreed to lower the 145% tariff imposed by Trump to 30%. Meanwhile, China committed to reducing its tariffs on U.S. goods from 125% to 10%. Nevertheless, the Chinese Commerce Ministry asserted that China had fulfilled its obligations by either canceling or suspending tariffs and non-tariff measures against the U.S. following their agreement.
The ministry, however, accused the United States of unilaterally inciting new economic friction, which it claimed exacerbates the instability in their bilateral trade relationship, while maintaining that China has remained committed to their agreements. It also hinted at possible retaliation, intending to take forceful actions to protect its rights and interests.
A fresh wave of controversy was stirred by President Trump’s remarks last Friday, as he asserted that he would no longer remain lenient with China on trade matters. Through social media, Trump declared that China had breached an agreement with the United States. Later, within the Oval Office, Trump stated his intention to discuss matters with Chinese President Xi Jinping, while still accusing China of non-compliance.
Trump tweeted, “The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!” China, in response, accused the U.S. of deflecting and making unreasonable accusations that contradict the facts.
U.S. Commerce Secretary Howard Lutnick, speaking from Geneva, alleged slow progress in the trade deal on China’s part. Appearing on a Sunday broadcast, Lutnick mentioned that the U.S. was taking steps to demonstrate the implications of such a stance and asserted that Trump could resolve issues with Xi.
Last week, the Trump administration further intensified its standoff with China by announcing plans to revoke visas for Chinese students studying in the U.S. This decision affects a considerable number of Chinese nationals, as more than 275,000 of them are enrolled in American educational institutions.
The two countries are in a race to lead the development of advanced technologies like artificial intelligence, with the U.S. aiming to limit China’s access to cutting-edge computer chips. Simultaneously, China is striving to replace the U.S. as a dominant force in the Asia-Pacific region, including efforts to establish control over Taiwan, a close U.S. ally and a prominent technology powerhouse.