China Rejects US "Talks and Threats" Strategy on Trade

China has issued a firm warning to the United States, condemning its dual approach of offering dialogue while escalating threats in the ongoing trade dispute. Beijing emphasized that this "talks and threats" strategy is unacceptable and urged the US to collaborate on restoring a stable economic relationship between the two global powers.

The criticism from China's Commerce Ministry spokesperson came in response to US claims that a planned call about recent rare earth export controls was postponed. The spokesperson clarified, "The US side cannot seek talks on one hand while threatening to introduce new restrictive measures on the other." It was noted that China had already notified the US through established bilateral channels and that working-level consultations had occurred as recently as Monday.

The friction intensified last Friday when US President Donald Trump vowed to impose 100% tariffs on Chinese goods and restrict critical software exports, reacting to Beijing's announcement on rare earth restrictions. China's Foreign Ministry had already pushed back on these threats, labeling them as counterproductive for managing bilateral ties. In a recent development, however, Trump suggested the trade tensions would be resolved, signaling a potential de-escalation.

Amid the dispute, China has significantly expanded its controls on the rare earth sector. The new measures now include restrictions on key processing and manufacturing technologies and prohibit foreign companies from cooperation without prior authorization from the Chinese government. This move solidifies Beijing's position in the complex trade negotiations with Washington.