China has accused the US of “double requirements” after US President Donald Trump threatened to impose a further 100% tariff on Chinese language items in response to Beijing’s curbs on exports of uncommon earth minerals.
China says its export management measures announced final week had been in response to the US restrictions on its entities and focusing on of Beijing’s maritime, logistics and shipbuilding industries.
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Trump’s tariff threats, which come weeks forward of the doubtless assembly between the US president and his Chinese language counterpart Xi Jinping, have the potential to reignite a commerce warfare months after Washington lowered the China tariffs from 125 to 30 p.c.
The actions by the world’s two largest economies threaten to ignite a brand new commerce warfare, including additional uncertainty to world commerce. So what’s the latest historical past of US commerce measures towards China, and can the 2 international locations be capable to resolve their variations?
Why did China tighten export controls on uncommon earths?
On October 9, China expanded export controls to cowl 12 out of 17 rare-earth metals and sure refining tools, efficient December 1, after accusing Washington of harming China’s pursuits and undermining “the ambiance of bilateral financial and commerce talks”.
China additionally positioned restrictions on the export of specialist technological tools used to refine rare-earth metals on Thursday.
Beijing justified its measures, accusing Washington of imposing a sequence of commerce curbs on Chinese language entities regardless of the 2 sides being engaged in commerce talks, with the final one going down in Madrid, Spain final month.
International firms now want Beijing’s approval to export merchandise containing Chinese language uncommon earths, and should disclose their supposed use. China mentioned the heightened restrictions come because of nationwide safety pursuits.
China has a close to monopoly over uncommon earths, vital for the manufacture of expertise comparable to electrical vehicles, smartphones, semiconductors and weapons.
The US is a serious client of Chinese language uncommon earths, that are essential for the US defence trade.
On the finish of this month, Trump and Xi are anticipated to fulfill in South Korea, and specialists speculate that Beijing’s transfer was to realize bargaining benefit in commerce negotiations with Washington.
China’s tightening of restrictions on uncommon earths is “pre-meeting choreography” earlier than Trump’s assembly with Xi, Kristin Vekasi, the Mansfield chair of Japan and Indo-Pacific Affairs on the College of Montana, instructed Al Jazeera.
How did Trump reply?
On October 10, Trump introduced the imposition of a 100% tariff on China, efficient from November 1.
“Primarily based on the truth that China has taken this unprecedented place … the US of America will impose a Tariff of 100% on China, over and above any Tariff that they’re at the moment paying,” Trump wrote in a submit on his Fact Social platform.
He added that this might come into impact on November 1 or earlier than that. Trump added that the US would additionally impose export controls on “any and all vital software program”.
Earlier on October 10, Trump accused China of “commerce hostility” and even mentioned he may scrap his assembly with Xi. It’s unclear at this level whether or not the assembly will happen.
“What the US has is we’ve got numerous leverage, and my hope, and I do know the president’s hope, is that we don’t have to make use of that leverage,” US Vice President JD Vance instructed Fox Information on Sunday.
How did China reply to that?
China deemed the US retaliation a “double normal”, in keeping with remarks by the Chinese language Ministry of Commerce spokesperson on Sunday.
China mentioned that Washington had “overstretched the idea of nationwide safety, abused export management measures” and “adopted discriminatory practices towards China”.
“We live in an period of deeper intertwining of safety and financial insurance policies. Each the US and China have expanded their conceptions of nationwide safety, encompassing a spread of financial actions,” Manoj Kewalramani, chairperson of the Indo-Pacific Research Programme on the Takshashila Establishment in Bangalore, India, instructed Al Jazeera.
“Each have additionally weaponised financial interdependence with one another and third events. There are, in different phrases, no saints on this sport.”
Kewalramani mentioned that China began increasing the thought of “nationwide safety” a lot sooner than others, particularly with its “complete nationwide safety idea” launched in 2014.
By way of this, China started to incorporate many various areas, comparable to economics, expertise, and society, beneath the time period “nationwide safety”. This exhibits that China was forward of different international locations in broadening what counts as a nationwide safety difficulty.
China threatened further measures if Trump went forward along with his pledge.
“Willful threats of excessive tariffs usually are not the fitting approach to get together with China. China’s place on the commerce warfare is constant: we don’t need it, however we’re not afraid of it,” the Chinese language Commerce Ministry spokesperson mentioned in a press release.
“Ought to the US persist in its course, China will resolutely take corresponding measures to safeguard its reputable rights and pursuits,” the assertion mentioned.
What commerce measures has the US taken towards China in latest historical past?
2025: Trump unleashes tariff warfare
A month after taking workplace for his second time period, Trump signed an govt order imposing a ten p.c tariff on all imports from China, citing a commerce deficit in favour of China. On this order, he additionally imposed tariffs on Mexico and Canada. China levied countermeasures, imposing duties on US merchandise in retaliation.
In March, the US president doubled the tariff on all Chinese language merchandise to twenty p.c as of March 4. China imposed a 15 p.c tariff on a spread of US farm exports in retaliation; these took impact on March 10.
Trump introduced his “reciprocal tariffs,” imposing a 34 p.c tariff on Chinese language merchandise. China retaliated, additionally asserting a 34 p.c tariff on US merchandise. This was the primary time China introduced export controls on uncommon earths.
Hours after the reciprocal tariffs went into impact, Trump paused them for all his tariff targets besides China. The US and China continued to hike tit-for-tat levies on one another.
Trump slapped 145 p.c tariffs on Chinese language imports, prompting China to hit again with 125 p.c tariffs. Washington and Beijing later lower tariffs to 30 p.c and 10 p.c, respectively, in Might, then agreed to a 90-day truce in August for commerce talks. The truce has been prolonged twice.
December 2024: The microchip controls are tightened
In December 2024, Trump’s predecessor, former US President Joe Biden, tightened controls on the sale of microchips first launched on October 2022.
Underneath the brand new controls, 140 firms from China, Japan, South Korea and Singapore had been added to an inventory of restricted entities. The US additionally banned extra superior chip-making tools to sure international locations. Even merchandise manufactured overseas with US expertise had been restricted.
April 2024: Biden indicators the TikTok ban
Biden signed a invoice into regulation that might ban TikTok except it was bought to a non-Chinese language purchaser inside a yr. The US authorities alleged that TikTok’s Chinese language mother or father firm ByteDance was linked to the Chinese language authorities, making the app a risk to nationwide safety.
ByteDance sued the US federal authorities over this invoice in Might 2024.
In September this yr, Trump introduced {that a} deal was finalised to discover a new proprietor of TikTok.
October 2023: Biden introduces extra restrictions on chips
In October 2023, Biden restricted US exports of superior pc chips, particularly these made by Nvidia, to China and different international locations.
The objective of this measure was to restrict China’s entry to “superior semiconductors that might gasoline breakthroughs in synthetic intelligence and complex computer systems which can be vital to [Chinese] army functions,” Gina Raimondo, who was secretary of the US Division of Commerce throughout the Biden administration, instructed reporters.
Previous to this, Biden signed an govt order in August 2023, making a programme that limits US investments in sure high-tech areas, together with semiconductors, quantum computing, and synthetic intelligence, in international locations deemed to be a safety danger, like China.
October 2022: Biden restricts Chinese language entry to semiconductors
Biden restricted China’s entry to US semiconductors in October 2022. The foundations additional expanded restrictions on chipmaking instruments to incorporate industries that help the semiconductor provide chain, blocking each entry to American experience and the important elements utilized in manufacturing the instruments that produce microchips.
Semiconductors are used within the manufacturing of synthetic intelligence (AI) applied sciences. The US authorities positioned these restrictions again then to restrict China’s capacity to accumulate the power to supply semiconductors and advance within the technological race.
The restrictions made it obligatory for entities inside China to use for licences to accumulate American semiconductors. Evaluation by the US-based Carnegie Endowment for Worldwide Peace described these licences as “onerous to get” again then.
Not too long ago, some US lawmakers are calling for much more restrictions, warning that China may rapidly reverse-engineer superior semiconductor applied sciences by itself, outpace the US within the sector, and achieve a army edge.
Might 2020: Trump cracks down on Huawei
In Might 2020, the US Bureau of Trade and Safety intensified guidelines to cease Huawei, the Chinese language tech big, from utilizing American expertise and software program to design and make semiconductors in different international locations.
The brand new guidelines mentioned that semiconductors are designed for Huawei utilizing US expertise or tools, wherever on the earth, would wish US authorities approval earlier than being despatched to Huawei.
Might 2019: Trump bans Huawei
Trump signed an govt order blocking Chinese language telecommunications firms like Huawei from promoting tools within the US. The Shenzhen-based Huawei is the world’s largest supplier of 5G networks, in keeping with evaluation by the New York Metropolis-based suppose tank the Council on International Relations (CFR).
Underneath this order, Huawei and 114 associated entities had been added to an inventory that requires US firms to get particular permission (a licence) earlier than promoting sure applied sciences to them.
The rationale behind this order was the allegation that Huawei threatened US nationwide safety, had stolen mental property and will commit cyber espionage. Some US lawmakers alleged that the Chinese language authorities was utilizing Huawei to spy on People. The US didn’t publicise any proof to again these allegations.
Different Western international locations had additionally cooperated with the US.
March 2018: Trump imposes tariffs on China
Throughout his first administration, Trump imposed sweeping 25 p.c tariffs on Chinese language items value as a lot as $60bn. In June of 2018, Trump introduced extra tariffs.
China retaliated by imposing tariffs on US merchandise. Beijing deemed Trump’s commerce insurance policies “commerce bullyism practices”, in keeping with an official white paper, as reported by Xinhua information company.
In September 2018, Trump issued one other spherical of 10 p.c tariffs on Chinese language merchandise, which had been hiked to 25 p.c in Might 2019.
In the course of the Obama administration (2009-2017)
In 2011, throughout US President Barack Obama’s tenure, the US-China commerce deficit reached an all-time excessive of $295.5bn, up from $273.1bn within the earlier yr.
In March 2012, the US, European Union, and Japan formally complained to China on the World Commerce Group (WTO) about China’s limits on promoting uncommon earth metals to different international locations. This transfer was deemed “rash and unfair” by China.
In its ruling, the world commerce physique mentioned China’s export restraints had been breaching the WTO guidelines.
In 2014, the US indicted 5 Chinese language nationals with alleged ties to China’s Folks’s Liberation Military. They had been charged with stealing commerce expertise from American firms.
What’s subsequent for the US-China commerce warfare?
Trump and Xi are anticipated to fulfill in South Korea on the sidelines of the Asia-Pacific Financial Cooperation (APEC), which is about to start on October 31.
However the newest commerce dispute has clouded the Xi-Trump assembly.
On Sunday, Trump posted on his Fact Social platform, downplaying the risk: “Don’t fear about China, it can all be fantastic! Extremely revered President Xi simply had a foul second. He doesn’t need Melancholy for his nation, and neither do I. The usA. needs to assist China, not damage it!!!”
In an interview with Fox Enterprise Community on Monday, US Treasury Secretary Scott Bessent mentioned, “President Trump mentioned that the tariffs wouldn’t go into impact till November 1. He might be assembly with [Communist] Get together Chair Xi in [South] Korea. I consider that assembly will nonetheless be on.”
In the case of which of the 2 gamers is extra affected by the commerce warfare, Kewalramani mentioned that he thinks “what issues is who’s prepared to bear higher ache, endure higher price”.
“That is the essential query. I’d wager that Beijing might be higher positioned as a result of Washington has alienated allies and companions with its insurance policies since January. However then, China’s rising export controls usually are not merely aimed on the US. They influence each nation. So Beijing has not additionally endeared itself to anybody,” Kewalramani mentioned, declaring how Trump’s tariffs and China’s uncommon earth restrictions goal a number of international locations.
“Those affected essentially the most are international locations caught within the midst of nice energy competitors.”
On Sunday, US VP Vance instructed Fox Information about China: “In the event that they reply in a extremely aggressive method, I assure you, the president of the US has much more playing cards than the Folks’s Republic of China.”
Kewalramani mentioned that up to now, Beijing has been extra organised, ready and strategic than the US in its insurance policies.
“That mentioned, it has overreached with the newest spherical of export controls. US coverage, in the meantime, has lacked strategic coherence. The US nonetheless is the dominant world energy and has a number of playing cards to play. What issues, nevertheless, is whether or not it could possibly get its home so as.”
