 "US President Donald Trump and China's President Xi Jinping (File Photo: Reuters)")
US President Donald Trump has threatened to impose an additional 100 per cent tariff on China and said that he would cancel his upcoming meeting with Chinese counterpart Xi Jinping, as he reignited tensions between the two countries.
Trump on Friday accused Beijing of taking an “extraordinarily aggressive position on trade” and threatened that Washington would impose “large-scale Export Controls on virtually every product they make” as well as on “all critical software”.
The US president’s actions come in response to China’s announcement earlier this week that it would expand its rare earths export controls, adding five new elements and extra scrutiny for semiconductor users as Beijing tightens control over the sector.
In a post on Truth Social, Trump announced that the US-made restrictions will take effect on November 1 this year.
‘No reason to meet him now’
Earlier this month, Trump said that he would meet with Xi to discuss trade and other related issues. However, now, Trump has said that he is likely to cancel a planned meeting with the Chinese leader.
The Trump-Xi meeting was expected to take place on the sidelines of the Asia-Pacific Economic Cooperation forum in South Korea at the end of October.
“This was a real surprise, not only to me, but to all the Leaders of the Free World. I was to meet President Xi in two weeks . . . but now there seems to be no reason to do so,” Trump said.
What are the export control rules of China?
The world’s largest rare earths producer added dozens of pieces of refining technology to its control list and announced rules that will require compliance from foreign rare earth producers who use Chinese materials.
Impact Shorts
More ShortsChina produces over 90 per cent of the world’s processed rare earths and rare earth magnets. The 17 rare earths are vital materials in products ranging from electric vehicles to aircraft engines and military radars.
Exports of 12 of them are now restricted after the ministry added five - holmium, erbium, thulium, europium and ytterbium - along with related materials.
With inputs from agencies