China yesterday accused the United States of “naked economic terrorism” as Beijing ramps up the rhetoric in their trade war.
The world’s top two economies are at loggerheads as trade talks have apparently stalled, with US President Donald Trump hiking tariffs on $200 billion in Chinese goods earlier this month and blacklisting telecoms giant Huawei.
“We are against the trade war, but we are not afraid of it,” vice foreign minister Zhang Hanhui said at a press briefing to preview President Xi Jinping’s trip to Russia next week.
“This premeditated instigation of a trade conflict is naked economic terrorism, economic chauvinism, and economic bullying,” Zhang said, stressing that China opposes the systematic use of sanctions, tariffs and protectionism.
“There is no winner in a trade war,” he warned.
China has hit back with its own tariff increase on $60 billion in US products that will take effect Saturday, while state media has suggested that Beijing could stop exports of rare earths to the United States, depriving Washington of a key resource used to make hi-tech products.
The party’s mouthpiece, The People’s Daily, warned in an editorial on Wednesday that rare earths could be used as a counter-measure, adding that the US shouldn’t “say we didn’t warn you.”
China produces more than 95 percent of the world’s rare earths, and the United States relies on the Asian superpower for upwards of 80 percent of its imports.
US Secretary of State Mike Pompeo, asked about the rare earths threat during an interview, said that Americans have already “lost and suffered for decades under the current rules” and that Trump’s “singular focus is to push back” on China.
He renewed his attack on Huawei, saying there was a “deep connectivity” between the company and the Chinese state.
Huawei has rejected the accusations and on Tuesday filed a motion for summary judgment in a US court, hoping it would swiftly win a lawsuit against US legislation that bars federal agencies from using the company’s equipment.
“You have seen that for some time, the US government has tried very hard to fabricate various topics, misleading the public in the US or in other countries of the international community, in order to suppress Huawei,” Chinese foreign ministry spokesman Lu Kang told reporters.
While Washington and Beijing spar, Xi is preparing to meet with President Vladimir Putin from June 5 to June 7 as the neighbouring giants forge closer ties.
“This trade conflict will also have a serious negative impact on the development and revival of the global economy,” Zhang said.
China and Russia have broad consensus and common interests on the trade war issue, and the two countries will “certainly” strengthen their economic cooperation, Zhang said.