Key Points

In a post on X, Chinese Foreign Ministry Spokesperson Lin Jian said, "China firmly rejects the recent U.S. restrictions and sanctions on China, and will do what is necessary to protect its legitimate rights and interests."

https://x.com/MFA_China/status/1977750816611250641

He emphasised that "threatening high tariffs is not the right way to deal with China," urging Washington to "correct its approach and act on the common understandings the two presidents reached in their phone calls."

Lin further underlined that "the two sides can and should address each other's concerns through dialogue and manage differences on the basis of equality, respect and mutual benefit to keep bilateral ties on a steady, sound and sustainable track."

The remarks came as US President Donald Trump sought to ease tensions with Beijing, saying Chinese President Xi Jinping was "highly respected" and expressing optimism about bilateral ties.

In a post on Truth Social, Trump wrote, "Don't worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn't want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!! President DJT."

The White House also posted on X, stating, "It is impossible to believe that China would have taken such an action, but they have, and the rest is History. Thank you for your attention to this matter!"

The exchange followed renewed strain between Washington and Beijing after Trump's threat to impose new 100 per cent tariffs on Chinese imports. In response, China vowed countermeasures if the US president makes good on his warning, CNN reported.

Trump's latest threat came after China announced a raft of export restrictions on rare earth minerals last week, a move that has escalated trade tensions and threatened to derail months of progress in negotiations between the two economic powers.

Reacting to the development, a spokesperson for China's Ministry of Commerce said, "Resorting to threats of high tariffs is not the right way to engage with China."

The spokesperson added, "If the US persists in acting unilaterally, China will resolutely take corresponding measures to safeguard its legitimate rights and interests. Our position on a tariff war remains consistent -- we do not want one, but we are not afraid of one."

According to CNN, the rapid escalation of the dispute between the world's two largest economies has rattled global markets, sinking stocks and reigniting fears of a repeat of the tit-for-tat tariff war earlier this year, when duties on Chinese and American imports soared to around 145 per cent and 120 per cent respectively.

The rising tensions have also cast a shadow over the planned meeting between Trump and Xi Jinping, expected to take place in South Korea in two weeks' time. However, citing the rare earths issue, Trump has now expressed doubt over whether the meeting will go ahead, CNN reported.

- ANI