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China Says US Rekindles Trade Tensions After Recent Truce

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China Says US Rekindles Trade Tensions After Recent Truce

China has accused the United States of starting new economic problems, just weeks after both countries agreed to a trade truce. The truce was meant to reduce conflict, but tensions have quickly returned. The Chinese Commerce Ministry said on Monday that the US has taken actions that go against the agreement made last month in Geneva.

China says it is following the trade agreement closely. However, it blames the US for creating fresh problems that are making the situation worse. China warned that it will take strong actions to protect its rights if the US continues to harm its interests.

The latest disagreement began after US President Donald Trump posted a message on social media. He said that China had broken the deal completely. Trump also said that he made the deal quickly to help China avoid a serious problem. He ended his message by saying that he had tried to be kind, but it did not work.

The trade truce agreed in Geneva was a 90-day pause in tariffs. The deal gave both sides time to work on a bigger agreement. It also included plans to lower or remove some of the taxes they had placed on each other’s goods. However, the progress seems to be at risk now as both sides blame each other for not keeping the agreement.

A major issue is China’s control over rare earth minerals. These are important materials used in many high-tech products like smartphones, electric vehicles, and military weapons. China had placed export rules on these minerals in April. These rules were seen as a response to the US raising tariffs on Chinese goods.

As part of the Geneva agreement, the US expected China to ease those export limits. But that has not happened. China still requires special government approval for each shipment. This approval system allows China to control which countries get the minerals and how much they receive.

US officials have said they are frustrated with China’s actions. They believe China is not respecting the terms of the deal. Because of this, the US has taken new steps against China. These include limiting the sale of AI chips, banning some advanced chip design tools, and canceling the visas of some Chinese students.

China says these actions break the agreement made in Geneva. Its Commerce Ministry said the US has introduced unfair rules and is creating obstacles in trade and education. These actions have made the relationship between the two countries more tense.

China is also facing pressure at home. An official survey showed that its manufacturing industry shrank again in May. This is the second month in a row with falling numbers. The 30 percent tariff placed on Chinese goods by the US is one of the reasons. This number does not include older taxes that were already in place before this year.

US Treasury Secretary Scott Bessent said in a TV interview that China is holding back some of the minerals it agreed to release. He said it is not clear if this is a mistake or a planned move. He believes the matter could be fixed when Trump and Chinese President Xi Jinping speak directly. According to reports, the two leaders have not spoken since mid-January.

China has defended its mineral export system. It says the rules follow global standards and are not aimed at any specific country. Chinese officials also said they are open to talks with other nations about how export controls should work.

The Geneva deal gave the US and China three months to come up with a long-term solution. But that time is passing quickly. Talks have stopped for now, and there is no sign of major progress. Many believe only a direct conversation between Trump and Xi can fix the situation.

If the current problems continue, the trade war between the two countries could return. Businesses around the world are watching closely. They want to know if the US and China can solve their differences or if things will get worse again.

As the deadline of the 90-day window approaches, pressure is growing on both sides. The outcome could affect not only their own economies but also global markets. Trade between the two largest economies in the world is a major driver of international growth.

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