USTR: China Delayed US Call After Export Controls Broadened

The ongoing trade tensions between the United States and China have recently escalated. U.S. Trade Representative Jamison Greer revealed that the U.S. sought a phone conversation with China after Beijing announced the expansion of its export controls on rare earth elements. However, China deferred this call. Greer characterized China’s actions as a “power grab.”

U.S. Response to China’s Export Controls

On Friday, U.S. President Donald Trump reacted strongly to China’s announcement. He proposed 100% tariffs on goods exported from China to the U.S. Additionally, he introduced new export controls on critical software, effective by November 1.

Trump’s Remarks on China’s Leadership

In a post on Truth Social, Trump commented, “Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I.” He asserted that the U.S. aims to assist China rather than harm it.

China’s Defense of Export Controls

China’s government, through its commerce ministry and state broadcaster CCTV, responded to U.S. tariffs. They labeled the U.S. approach as exhibiting “double standards” and defended their export limitations on rare earth materials. The ministry emphasized the military implications of these resources amid ongoing global conflicts.

Trade War Context

• China accused the U.S. of unfair practices, including the addition of Chinese firms to a trade blacklist.
• They also highlighted imposed port fees on ships linked to China.
• The trade skirmish has intensified since Trump resumed office earlier this year.

As markets reacted negatively to the uncertainty surrounding U.S.-China relations, Greer expressed optimism. He noted that he expects markets to stabilize in the coming week as negotiations proceed.

Future Meetings on Trade Relations

Despite the rising tensions, there remains hope for dialogue. Greer mentioned that a potential meeting between Trump and President Xi Jinping could take place during the Asia-Pacific Economic Cooperation forum in South Korea later this month.

The relationship between the U.S. and China continues to be pivotal, impacting global trade and economics. The unfolding events will be closely monitored by financial markets and political analysts alike.