Commercial truce: “Provocative friction,” says China

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China accused the United States of “new economic and commercial frictions”, which supports the statements of President Donald Trump that Beijing violated the commercial truce that the two countries reached only a few weeks ago.

In a statement on Monday, the China Ministry of Commerce said it was “strictly implementing” the consensus of recent trade conversations in Geneva. He blamed the United States for actions that “seriously undermine” the agreement.

“The United States has been causing new economic and commercial friction, exacerbating the uncertainty and instability of bilateral economic and commercial relations.

“If the United States insists on its way and continues to undermine China's interests, China will continue to take resolved and forceful measures to safeguard their legitimate rights and interests,” said the ministry.

The comments occurred after Trump published in Truth Social on Friday that China had “totally violated their agreement with us.”

He said he made a fast deal with China to “save them from what I thought it was going to be a very bad situation,” he added: “Both for Mr. Nice Guy!”

The tensions become once more only one month after both parties agreed to stop their tariff war.

The Geneva truce backed the steep mutual tariffs and established a 90 -day window to reach a broader agreement. But now, the conversations are “stagnant”, with both nations accusing each other of bad faith.

An important inflammation point: China's export controls in rare earth minerals: essential components in electronics, electric vehicles and military equipment.

American officials expected those restrictions to be relieved under the truce. But three officials told CNN that China has not moved, which caused frustration within the Trump administration.

In response, Washington has taken new steps against the technology and education sectors of China.

Last month, the United States warned companies that do not use chips made by Chinese technological giant Huawei.

Then, he moved to limit sales of certain US technologies to China and reduce students' visas for Chinese citizens.

Beijing replied. The Ministry of Commerce said that the United States had “introduced successively a series of discriminatory restrictive measures” since Geneva conversations, including the export rules of AI chips, prohibitions of sales software sales of chips design and visa restrictions.

The confrontation occurs when China's economy shows signs of tension.

The manufacturing activity fell for the second consecutive month in May, according to an official survey published on Saturday.

Meanwhile, American tariffs on Chinese products are now 30%, not including the oldest tasks.

In the center of the dispute there are rare earth minerals. On April 4, China imposed controls in seven minerals of this type.

Although it is not a direct prohibition, shipments now require the approval of the Government, a system that provides strict Beijing control over the global supply chain.

According to the Geneva agreement, China had agreed to “suspend or eliminate” non -objective measures promulgated since April 2. But CNN reports suggest that export controls remain in place.

On CBS Face the Nation Sunday, the United States Secretary of the Treasury, Scott Besent, said China was “retaining some of the products they agreed to release.”

“It may be a failure in the Chinese system, it may be intentional,” he added.

Besent said the problem would be solved when Trump and Chinese president Xi Jinping talk, a call that expects “very soon.”

The last conversation known between the two leaders was on January 17, a few days before the inauguration of Trump.

China continues to defend its export control rules.

In an informative session on Friday, a spokesman from the Ministry of Foreign Affairs said the policy is “in line with international practices” and “is not aimed at specific countries.”

Beijing also said that he is “willing to strengthen dialogue and cooperation in the field of export controls with relevant countries and regions.”

The former United States ambassador to China, Nicholas Burns, said Beijing has been “difficult” in negotiations.

Speaking to CNN, he said: “Much of this is in China: China has been the most disruptive force in world trade in the last 25 to 30 years.

“China has to demonstrate to the United States on intellectual property, about the transfer of forced technology, which will be a responsible commercial partner of the United States.”

As both countries excavate, Geneva truce seems increasingly fragile, and the path to a stable commercial relationship is more uncertain than ever.

(CNN)

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