China vows 'forceful measures' against US for violating trade deal
What's the story
China has accused the United States of breaching a recent trade agreement and has vowed to take steps to protect its interests. The Chinese Ministry of Commerce issued a statement today, rejecting US President Donald Trump's allegations that Beijing violated a deal reached in Geneva last month. The ministry said if the US continues to harm China's interests, it will take "resolute and forceful measures" to defend its legitimate rights.
Rising friction
US actions exacerbate trade tensions
The Ministry of Commerce accused the US of unilaterally imposing fresh discriminatory restrictions. These include new guidelines on AI chip export controls, limitations on the chip design software sales to China, and the revocation of Chinese student visas. The ministry alleged that these actions violate an agreement reached between Trump and Chinese President Xi Jinping.
Ongoing disputes
Trade tensions escalate despite thaw in May
The trade tensions between the two economic powerhouses have escalated after a temporary easing of tariffs in May. The Trump administration recently announced plans to revoke visas for Chinese students and restrict chip design software sales to China. Additionally, it has banned exports of vital US jet engine parts and technology to China, according to reports by The New York Times.
Rejection
China rejects US accusations, claims compliance
US Trade Representative Jamieson Greer had complained that China hadn't accelerated exports of critical minerals for advanced electronics. In response, the Chinese Ministry of Commerce said it "resolutely rejects these unjustified accusations" and stressed that China has strictly implemented the consensus reached with the US.
Intervention
US Treasury Secretary suggests leadership call to resolve deadlock
US Treasury Secretary Scott Bessent had said that trade talks with China had stalled and suggested a call between Trump and Xi could help break the deadlock. White House Economic Adviser Kevin Hassett also expected such a call this week. However, after China's accusations against the US, an immediate leadership call seems less likely.