USTR: China Avoids US Call Following Expansion of Export Controls

On October 12, 2023, U.S. Trade Representative Jamison Greer addressed a significant diplomatic setback concerning the latest trade tensions with China. Following China’s announcement of expanded export controls on rare earth elements, the U.S. attempted to initiate a phone call but was met with deferral from Beijing. Greer characterized China’s actions as a “power grab,” underscoring the escalating friction between the two nations.

Washington’s Response to China’s Export Controls

The U.S. response was swift and severe. President Donald Trump announced the imposition of 100% tariffs on Chinese exports destined for the U.S. Additionally, he called for new export controls affecting critical software, which are set to take effect on November 1.

China’s Reaction to U.S. Tariffs

In light of the U.S. tariffs, the Chinese embassy in Washington did not immediately respond to inquiries. However, the Chinese government has been vocal about its stance. State broadcaster CCTV reported that the Chinese commerce ministry defended its export restrictions on rare earth elements. They emphasized concerns regarding military applications amidst ongoing global conflicts.

• China accused the U.S. of employing “double standards.”
• Reports indicated that the U.S. added several Chinese companies to a trade blacklist.
• Beijing did not impose new levies on U.S. products despite the trade tensions.

Trade War Dynamics

The trade war between the U.S. and China, intensified by these recent exchanges, has exerted considerable strain on global financial markets. Trump’s suggestion to cancel an upcoming meeting with Chinese President Xi Jinping contributed to market instability. However, Greer expressed optimism that markets would stabilize possibly following a potential meeting at the Asia-Pacific Economic Cooperation forum later this month in South Korea.

In summary, the diplomatic relations between the U.S. and China are at a critical juncture, notably following the recent expansion of export controls by China. The U.S. seeks to balance its trade policies while addressing security concerns associated with rare earth elements.