China blames Trump and US for escalating trade war

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China has criticized Donald Trump’s plan to impose an additional 100% tariffs on Chinese exports and threatened new countermeasures, blaming the United States for the rapid deterioration of relations between the world’s two largest economies.

Since the two countries held trade talks in Madrid last month, the United States has “continuously introduced a series of new restrictions against China,” including placing Chinese companies on a trade blacklist, the Commerce Department said in a statement.

“China’s position on tariff wars has been consistent: We do not want to fight, but we are not afraid to fight,” the ministry said on Sunday.

In the latest escalation in the trade war between the two countries, the US president said on Friday that he would impose “broad” export controls on “virtually every product they make” including “all important software”, along with new tariffs. The new measures will be imposed on or before November 1, according to Trump’s social media posts.

“Threatening high tariffs at every turn is not the right way to deal with China,” the Commerce Department said. “If the United States continues on its course, China will resolutely take similar measures to protect its legitimate rights and interests.”

Trump’s threat followed a series of trade actions taken by China over the past two days that expanded export controls on rare earths and related technologies, as well as equipment and materials needed to make batteries.

Beijing has also launched an antitrust investigation against US chipmaker Qualcomm and imposed duties on American-owned ships calling at Chinese ports.

Beijing’s actions this week appear to be a strategy to exert influence ahead of an expected face-to-face meeting between Trump and Xi in South Korea. Trump on Friday questioned whether the meeting would take place but later said they likely would.

New export controls imposed by China have raised fears of widespread disruption to global manufacturing.

Beijing said on Sunday that the impact on supply chains would be “very limited” and insisted that companies “don’t need to worry”, saying any applications for civilian use that comply with regulations will be approved.

Trump’s statement, issued on his “Truth” social media platform, raises the possibility of ending the detente in the trade war between the United States and China since a truce was reached in Geneva in May.

Before that, a virtual trade embargo between the two countries was looming after Trump imposed 145 percent tariffs on Beijing, and Xi responded with 125 percent tariffs on goods coming from the United States.

The White House, US Trade Representative and Treasury Department did not immediately respond to requests for comment.

Additional contributions from Wang Xueqiao in Shanghai