Summary
China responded to President Donald Trump's threat to impose a 100% tariff on Chinese imports by insisting on negotiation rather than conflict. This situation developed after China placed restrictions on exporting rare earths, crucial for various products. Both nations accuse each other of breaching a trade truce, raising tensions further.
Key Facts
- President Donald Trump threatened a 100% tariff on Chinese imports by November 1.
- China's Commerce Ministry stated they prefer negotiation but are unafraid of a tariff war.
- Rare earths are materials important for consumer and military products.
- China's new rules restrict the export of rare earths, impacting global manufacturers.
- The U.S. plans to limit tech exports and proposes new port fees on Chinese ships.
- China will impose its own port fees on American ships in reaction.
- China manages about 70% of rare earth mining and 90% of their processing.
- Trade tensions could prevent a meeting between Trump and China's Xi Jinping.
