China responds to Trump: Stop Threatening Tariffs, Let's Negotiate

 

China urges the U.S. to halt tariff threats and return to trade negotiations

The Chinese government has urged the United States to stop threatening new tariffs immediately and return to diplomacy to resolve ongoing trade tensions between the two nations. This appeal follows the latest move by U.S. President Donald Trump to impose an additional 100% tariff on a wide range of Chinese products. Beijing has described this decision as a unilateral act of pressure that could further destabilise the global economy.

In an official statement released on Sunday, 12 October 2025, the Chinese Ministry of Commerce (MOFCOM) asserted that all of its recent countermeasures against U.S. policies were 'necessary and defensive' rather than acts of economic aggression. The ministry warned that Washington's increasingly hardline stance would only worsen bilateral relations and disrupt global supply chains.

'Threatening China with high tariffs at every opportunity is not the right way to conduct relations,' the ministry said. 'China urges the U.S. to correct its mistakes immediately and create conditions for equal and respectful dialogue.'

Trump's latest move was announced on Friday evening (Washington time), only hours after he threatened to cancel his planned summit with President Xi Jinping next month. The new tariffs are scheduled to take effect on 1 November 2025 and will be accompanied by export controls on all critical software, which Washington claims are linked to national security concerns.

This followed a series of Chinese countermeasures, including imposing new port fees on US vessels, launching an antitrust investigation into Qualcomm Inc. and expanding restrictions on the export of rare earth elements and other strategic materials. These elements are critical components used in semiconductors, electric vehicle batteries and advanced military equipment, making them a key battleground in the ongoing technological rivalry between the two nations.

In a subsequnt statement, the Chinese Ministry of Commerce clarified that the new export restrictions on rare earths were not an outright ban, but rather a regulatory mechanism intended to protect national security and maintain stability in the global supply chain. Under the new policy, any foreign exporter using even small amounts of Chinese-sourced rare earth elements must obtain a valid export licence before shipping.

The regulation also extends to equipment, processing technologies, and magnet manufacturing that rely on rare earths, all of which are vital to industries such as electric vehicles, renewable energy, and defence manufacturing. China emphasised that the policy aims to ensure the responsible and sustainable use of resources while preventing potential misuse by foreign entities that could harm its national interests.

MOFCOM stated that, prior to implementing the new policy, Beijing had informed its key trading partners through bilateral export control dialogues. A comprehensive assessment of the policy’s potential impact on global industry chains was also conducted, concluding that its effects on international markets would be 'very limited and manageable'.

China has reiterated its commitment to enhancing international cooperation on export controls, as well as maintaining open dialogue with other nations, in order to safeguard the security and stability of the global industrial supply chain. The Ministry also urged the US to stop using 'economic coercion as a political tool' and to adopt a more constructive diplomatic approach.

Meanwhile, several analysts view the latest developments as signalling the onset of a 'second wave' of the US–China trade war. Prolonged tariff escalations between the world’s two largest economies could raise global inflation, disrupt electronics supply chains and create uncertainty in financial markets. Some technology executives warn that the ongoing confrontation could accelerate economic decoupling between the two nations — an outcome that could reshape global trade for years to come.

However, many experts believe there is still room for negotiation, given the substantial economic risks faced by both sides. For China, maintaining global trade stability is essential for its post-pandemic recovery and domestic economic transformation. For the US, preserving trade relations with one of its largest partners is crucial for curbing inflation and sustaining growth.

As diplomatic tensions escalate, the world is watching closely to see what both powers will do next. In closing its statement, Beijing reaffirmed its commitment to fair dialogue, global stability and mutually beneficial cooperation. However, it also warned that 'any form of unilateral pressure will only deepen the crisis of international trust'.

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