The Chinese Ministry of Commerce defended the country’s restrictions on rare earth mineral exports in a statement on Sunday, October 12 claiming they do not target any specific country and are related to the country’s commitments to non-proliferation and other international obligations.

China also rejected the fresh threats issued by the US President Donald Trump of 100% tariffs on its exports, among others, calling them a reflection of American “double standards.”

It warned the US that such “wilful threats of high tariffs are not the right way to get along with China” asserting that though “it does not want a tariff war it is also not afraid of it”. It advised the Trump administration to stick to the diplomatic mechanisms devised after painstaking negotiations to sort out any differences in mutually respectful ways.

After condemning China for implementing an export control on rare earth minerals, Trump on Friday, October 10, announced a 100% tariff on all imports from the country and control on the export of “any and all critical software” to the country. The new measures would be effective from November 1.

Trump also threatened to impose restrictions on exports of airplanes and airplane parts to China and expressed apprehensions about his participation in a proposed meeting with Chinese President Xi Jinping in South Korea on the sidelines of the Asia-Pacific Economic Cooperation Forum (APEC) starting on October 31.

China has rejected US allegations and reiterated that the restrictions on the export of technologies used for mining and processing rare earth minerals were not targeted at any specific country, but related to its larger obligations to non-profileration and world peace.

“China, as a responsible major country, employs export controls on related items according to the law, in order to better defend world peace and regional stability, and to fulfil non-proliferation and other international obligations.”

China also claimed that the restrictions were imposed after informing most of the affected countries in advance.

China produces and exports around 90% of all rare earth minerals in the world. These minerals are critical for the production of smartphones, renewable energy technology, electric vehicles and military hardware among other things.

US double standards

The Chinese Ministry of Commerce claimed that despite the trade deal and a series of talks, the US continues to impose restrictions on thousands of its companies. Fresh restrictions have been imposed on Chinese trade since the bilateral trade talks in Madrid, Spain last month as well.

After Trump his so-called reciprocal tariff regime in April against countries and companies across the world, China was one of the few nations which had retaliated with its own tariffs and export restrictions.

Later in May, both agreed to reduce tariffs against each other under a temporary trade deal until a more stable agreement was reached. The Madrid talks were held to explore the possibility of such stable agreement.

On Sunday, China refrained from announcing its own countermeasures. However, despite the agreement, the US continued its policy of targeting specific Chinese firms. In the first week of October it also announced imposition of port fees on Chinese ships.

“The US commerce control list (CCL) covers over 3,000 items, whereas China’s export control list of dual list items only cover about 900.” These and other “measures of the US side have seriously harmed the legitimate and lawful rights and interests of companies, severely disrupted the international economic and trade order, and gravely undermined the security and stability of global industrial and supply chains,” the statement from China’s Ministry of Commerce read.

China has claimed that imposition of port fee on Chinese vessels, in particular, violates the WTO rules and “breaches the principle of equality and mutual benefit of the China-US Maritime Transport Agreement” calling it “a typical act of unilateralism.”

The US export ban on software may affect the production of mobile phones and other software based devices in China.

China asked the US to correct its practices, warning that if it insists “on going the wrong way, China will surely take resolute measures to protect its legitimate rights and interests.”

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