China Rejects Trump’s Allegations And Accuses US Of Violating Trade Pact
Topline
Chinese authorities on Monday accused the U.S. of violating a recent trade pact that both agreed to in Geneva last month, as they dismissed President Donald Trump’s allegation about Beijing breaching the agreement, a move that could signal a further escalation in trade tensions between the two countries, which could potentially jeopardize last month’s tariff truce.
China’s Commerce Ministry accused the U.S. of violating a trade deal agreed in Geneva by imposing … More
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Key Facts
In a press briefing, a Chinese Commerce Ministry spokesperson dismissed Trump’s comments accusing China of violating the agreement, saying Beijing has worked “to strictly implement and actively safeguard the Geneva deal.”
The spokesperson noted that China had acted in accordance with the deal to cancel or suspend “relevant tariffs and non-tariff measures” it had taken as retaliation against the U.S. government’s reciprocal tariffs.
The spokesperson then accused the U.S. of introducing “ a number of discriminatory restrictive measures against China” after the talks, citing expanded export controls on AI chips and other chip-building technology.
The official also criticized the U.S. government’s crackdown on Chinese student visas, saying these actions violated the consensus reached between Trump and Chinese President Xi Jinping in a phone call on January 17.
The spokesperson then warned that if the U.S. continues to take actions that damage China, Beijing will “take resolute and forceful measures to safeguard its legitimate rights and interests.”
What Had Trump Said About China Violating The Geneva Deal?
In a post on his Truth Social platform on Friday, Trump said: “China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US,” without specifying how it had done so. The president then signalled that the U.S. may retaliate against this alleged non-compliance, saying: “So much for being Mr. NICE GUY!” In his post, the president claimed his tariffs had put China in “grave economic danger” and he made a “FAST DEAL” in Geneva, “in order to save them from what I thought was going to be a very bad situation.”
What Do We Know About The Current State Of U.s.-China Trade Talks?
In an interview with Fox News last week, Treasury Secretary Scott Bessent acknowledged that trade talks with China were “a bit stalled,” but said he believes U.S. officials will be “having more talks with them in the next few weeks.” Bessent did not specify any sticking points that have prevented the talks from progressing, but noted that he believes a direct call between Trump and Xi will be needed to close the deal. “I think that given the magnitude of the talks, given the complexity, that this is going to require both leaders to weigh in with each other,” the treasury secretary said. Bessent then added that Trump and Xi have a “very good relationship” and he was “confident that the Chinese will come to the table when President Trump makes his preferences known.”
Key Background
U.S. and Chinese officials met in Geneva last month to discuss a resolution to a spiraling trade war between the two countries, triggered by President Donald Trump’s so-called “reciprocal tariffs.” After the meeting both sides announced they had agreed to significantly cut back tariffs placed on each other’s goods for at least 90 days, while continuing discussions on a broader trade deal. As part of the agreement, both sides agreed to lower their “reciprocal tariffs” on each other from 125% to 10%. However, a separate 20% tariff on Chinese goods imposed by Trump earlier this year—over China’s alleged role in the fentanyl crisis in the U.S.—would remain in effect, keeping the overall tariffs on Chinese goods at 30%. The talks came after both sides engaged in a tit-for-tat tariff war which saw U.S. levies on China hit 145% while Chinese tariffs on U.S. goods were raised to 125%. While announcing the deal, Bessent acknowledged that the spiraling tariffs were equivalent to a trade embargo and said “neither side wants that.”
What To Watch For
No meetings have taken place between the two sides since the Geneva talks. In their joint statement, both sides had agreed to “establish a mechanism to continue discussions about economic and trade relations.” Bessent and Greer will represent the U.S. side in these discussions, while Vice Premier He Lifeng will lead the Chinese side. These future talks were set to be held alternately in China and the U.S. or in a third country that both sides agree upon. It is unclear how these proposed meetings will be handled amid the latest round of tensions. After the Geneva deal announcement, Trump also said he was looking forward to talk with Xi, but that also hasn’t happened so far.
Further Reading
Trump Accuses China Of Violating U.S. Trade Agreement (Forbes)
Bessent Says China Trade Talks ‘Are A Bit Stalled’—U.S. Futures Slip (Forbes)