Taipei, Taiwan (AP) – On Monday, China criticized the United States, alleging that it jeopardized China’s interests with actions such as introducing AI chip export control guidelines, halting the sale of chip design software to China, and considering the cancellation of student visas for Chinese nationals.
“These actions constitute serious violations of the consensus,” stated the Commerce Department, referencing the joint agreements between the US and China. China acknowledged recent substantial tariff reductions to resume trade between the two largest global economies.
There was, however, no significant escalation from last month’s developments in President Donald Trump's Trade War, as fundamental differences between Beijing and Washington remain unresolved. Monday’s statement highlighted how easily such contracts could lead to further instability.
The agreement is set to last for 90 days, providing a window for negotiators from both sides to reach a more meaningful accord. Yet, the suspension has led to tariffs being higher than they were before Trump began increasing them last month. This has left businesses and investors grappling with uncertainty regarding the continuation of the truce.
Jamieson Greer, US Trade Representative, indicated that the US has agreed to reduce the tax from 145% imposed last month to 30%. In turn, China has consented to lower the tariff rate on US products from 125% to 10%.
The Commerce Department remarked that China backed the termination of the contract and lifted or suspended tariffs and non-tariff barriers imposed on the US as “mutual tariffs” following the agreement.
“The United States has unilaterally provoked new economic and trade tensions, deepening the uncertainty and instability of bilateral economic and trade relations,” China stated, emphasizing its stance.
China also hinted at potential retaliation, asserting that it would “persist in taking decisive and robust measures to safeguard its legitimate rights and interests.”
Controversy escalated further on Friday when Trump declared he would not be lenient toward China in trade, asserting in a social media post that China had breached its agreement with the United States.
Shortly afterward, Trump mentioned in a press briefing at the Oval Office that he would discuss the matter with Chinese President Xi Jinping, expressing hope for a resolution despite accusing China of violating the agreement. “The troubling news is, which may not surprise some, is that they completely breached the agreement we established,” Trump tweeted. “I’m done being Mr. Nice Guy!”
In light of Trump’s remarks, the Commerce Department responded, stating that instead of reflecting on its own policies, the US had shifted blame, unfairly condemning China for violating the consensus.
US Secretary of Commerce Howard Lutnick asserted that the Chinese would “slowly roll the contract back” from Geneva.
Speaking on Fox News on Sunday, Lutnick noted that the US is “taking specific measures to express its position in this matter,” adding that Trump “will resolve the situation” with Xi.
The Trump administration revealed plans to escalate tensions with China further, including the initiation of visa revocations for Chinese students studying in the US.
More than 275,000 Chinese students are currently enrolled in US campuses.
Both nations are engaged in a competition to pioneer advanced technologies such as artificial intelligence, with Washington striving to limit China’s access to cutting-edge computer chips. Additionally, China aims to diminish US influence in the Asia-Pacific region by asserting control over US partners and major tech players in Taiwan.
Source: apnews.com