Threats are not the right way to get along with China, the Commerce Ministry has said

Beijing has made it clear that it won't yield to Washington's latest tariff threats, urging the United States to seek a negotiated settlement instead of escalating tensions.

The warning came as part of an official statement released by China's Ministry of Commerce on Sunday. The response followed US President Donald Trump's plan to impose a 100% tariff on Chinese imports, citing Beijing's new restrictions on rare earth exports - vital materials used in products from smartphones to fighter jets.

"China's position on the trade war is consistent: we do not want it, but we are not afraid of it," the ministry stated.

The renewed friction threatens to derail a possible meeting between Trump and Chinese President Xi Jinping, scheduled to take place on the sidelines of the APEC summit in South Korea in late October or early November.

The meeting had been viewed as an opportunity to revive dialogue between the world's two largest economies. Trump has spent much of the year raising import duties on trading partners to force concessions. China, however, has refused to bend, relying on its economic leverage to counter US pressure.

"Willful threats of high tariffs are not the right way to get along with China," the Commerce Ministry said. "If the US insists on going the wrong way, China will surely take resolute measures to protect its legitimate rights and interests," it warned.

Both countries have accused each other of breaching the trade ceasefire by introducing new restrictions. Trump has accused China of "becoming very hostile," claiming Beijing is "holding the world captive" by limiting access to rare earths.

Beijing's new export rules now require foreign companies to obtain special approval before exporting goods containing even minimal amounts of Chinese-sourced rare earth elements.

In August, the US and China agreed to prolong a tariff truce after a trade war in which both sides imposed ever-increasing duties. Under the 90-day extension, US tariffs on Chinese imports were reduced from 145% to 30%, while China's tariffs on American products dropped from 125% to 10%. The extension is set to expire in November.

(RT.com)