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China Denies Trump Claim, Says It Was US That Broke Trade Deal

Commerce ministry says it upheld the trade agreement, while the US launched new “restrictive” measures on chips, software and students – issues the US has said were not in the deal.


U.S. President Donald Trump and China's President Xi Jinping shake hands ahead of their bilateral meeting during the G20 leaders summit in Osaka, Japan.
US President Donald Trump and China's President Xi Jinping shake hands ahead of their bilateral meeting during the G20 leaders summit in Osaka, Japan in June 2019. File Reuters photo).

 

China hit back on Monday against US President Donald Trump’s statement that Beijing had violated the trade deal agreed on in Geneva, saying the claim was “groundless.”

In a comment issued by China’s Commerce Ministry in response to Trump’s remarks on Friday that China breached the bilateral agreement to roll back tariffs, it vowed to take forceful measures to safeguard its interests.

The ministry said China had implemented and actively upheld the agreement reached last month in Geneva, while the US had introduced multiple “discriminatory restrictive” measures against China.

 

ALSO SEE: China ‘Totally Violated’ Tariffs Agreement With US, Trump Says

 

Those measures included issuing guidance on AI chip export controls, halting sales of chip design software to China and revoking visas for Chinese students, the ministry added.

“The US government has unilaterally and repeatedly provoked new economic and trade frictions, exacerbating uncertainty and instability in bilateral economic and trade relations,” the ministry said in a statement.

It did not elaborate on what forceful measures it might take in response.

 

Trump to double steel, aluminium tariffs

Beijing and Washington agreed in mid-May in Geneva to pause triple-digit tariffs for 90 days. In addition, China also promised to lift trade countermeasures that restricted its exports of the critical metals needed for US semiconductor, electronics and defence production.

Trump on Friday also announced a doubling of import tariffs on steel and aluminium to 50%.

While China is the world’s largest steel producer and exporter, very little is sent to the United States, as a 25% tariff imposed in 2018 shut most Chinese steel out of the market. China ranks third among aluminum suppliers.

 

‘Trump, Xi likely to speak soon’

US President Donald Trump and Chinese President Xi Jinping will speak soon to iron out trade issues including a dispute over critical minerals, Treasury Secretary Scott Bessent said on Sunday.

Trump and his top trade officials say China violated the agreement reached in Geneva by failing to promptly roll back restrictions it imposed on critical minerals.

“What China is doing is they are holding back products that are essential for the industrial supply chains of India, of Europe. And that is not what a reliable partner does,” Bessent said in an interview with CBS’ “Face the Nation.”

“I am confident that when President Trump and Party Chairman Xi have a call, that this will be ironed out,” he said.

“But the fact that they are withholding some of the products that they agreed to release during our agreement – maybe it’s a glitch in the Chinese system, maybe it’s intentional. We’ll see after the President speaks with the party chairman.”

Trump said later on Friday he was sure that he would speak to Xi. China said in April that the two leaders had not had a conversation recently.

Asked if a talk with Xi was on Trump’s schedule, Bessent said, “I believe we’ll see something very soon.”

White House economic adviser Kevin Hassett said no specific date for the conversation has been set, but there have been discussions that the leaders will talk about last month’s Geneva agreement on some tariff disputes.

“President Trump, we expect, is going to have a wonderful conversation about the trade negotiations this week with President Xi. That’s our expectation,” Hassett said.

 

  • Reuters with additional input, editing by Jim Pollard

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years.