Beijing/Washington — Trade tensions between the United States and China have entered a new and uncertain phase, with Beijing vowing to take “resolute and forceful measures” in response to Washington’s latest moves targeting Chinese technology and exports.
The sharp warning followed U.S. accusations that China had failed to fully honor the commitments of a temporary 90-day trade truce agreed earlier this year. According to U.S. officials, Beijing has restricted shipments of key rare earth minerals and stalled deliveries of critical supplies, moves the White House argues violate the spirit of the Geneva trade deal.
At the center of the dispute are sweeping export controls imposed by the Trump administration on Chinese access to advanced semiconductors, AI chip designs, and specialized software. Washington has also tightened visa rules for Chinese researchers, framing the measures as essential for national security and to protect American technological leadership.
China’s Commerce Ministry rejected the allegations outright, insisting that Beijing has acted in line with the agreement. Officials accused Washington of undermining trust by layering new restrictions on top of the truce, calling the measures “coercive and discriminatory.”
“China will not sit idly by,” a spokesperson said, adding that Beijing would take “forceful measures” if the U.S. continues down this path. While no specifics were given, analysts believe possible retaliation could include new tariffs, restrictions on U.S. firms operating in China, or limits on exports of strategic resources vital to U.S. industries.
The stakes are high. Rare earth minerals, many of which are dominated by Chinese supply chains, are essential to everything from electric vehicles and consumer electronics to U.S. defense systems. Any disruption could ripple through global markets, raising costs and sparking supply shortages.
The White House, meanwhile, maintains that its actions are justified. “China’s behavior shows a lack of good faith,” a senior U.S. official said, stressing that President Trump is prepared to act decisively to safeguard American interests.
Despite the mounting rhetoric, diplomatic channels remain open. Both President Trump and President Xi are expected to engage directly in the coming days in an attempt to prevent the dispute from spiraling into a full-scale trade war.
For now, however, the prospect of a fresh round of tariffs and counter-tariffs looms large with investors, industries, and global markets bracing for the fallout of the world’s two largest economies once again locking horns.
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