US President Donald Trump has threatened to cancel a meeting with Chinese President Xi Jinping scheduled for this month over technology and trade issues.
President Trump and President Xi were expected to meet on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit, which begins on October 31, with the aim of easing economic tensions.
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However, in a social media post on Friday, President Trump criticized China over new restrictions it announced on exports of rare earth metals. The US president also signaled the possibility of significant tariffs against China.
“I haven’t talked to President Xi because there was no reason to do so. This was a real surprise, not just to me, but to all the leaders of the free world,” Trump said. “I was scheduled to meet with President Xi at APEC in South Korea in two weeks, but there seems to be no reason to do so now.”
Relations between President Trump and China have been volatile, with both countries introducing new measures aimed at countering each other in areas of competition for influence, such as technology development.
Rare earth metals are essential to these developments, and China is a world leader in refining metals for use in devices such as computers, smartphones and military weapons.
On Thursday, China announced a series of new restrictions on exports of these products. Of the 17 elements considered rare earth metals, China will now require export licenses for 12.
Technologies related to metal processing will also face new licensing requirements. The measures also include a special approval process for foreign companies transporting metal elements abroad.
threat of retaliation
China explained that the new rules are necessary to protect its national security interests. But in a lengthy post on Truth Social, President Trump accused the country of trying to corner the rare earths industry.
“They have become so hostile that they are writing to countries all over the world that they want to impose export controls on every element of production related to rare earths, even if it’s not made in China, and just about anything else you can think of,” Trump wrote.
The Republican president warned that he would seek to counter protectionist moves and restrict China’s access to industries in which the United States has a dominant position.
“China should not be allowed to take the world ‘captive’, but it appears to have been their plan for quite some time, including the ‘magnet’ and other elements that China has secretly accumulated to create a kind of monopoly,” Trump said.
“But the United States also has a monopoly position, much more powerful and far-reaching than China’s. I just didn’t choose to take advantage of it, and there was no reason to do so — until now!”
The Trump administration had previously imposed huge tariffs on China, one of the United States’ largest trading partners.
However, these tariffs were eventually eased after the two countries reached an agreement on a 90-day moratorium that was set to expire around November 9th.
The United States has previously taken aggressive steps aimed at disrupting China’s high-tech sector, which it views as a key competitor.
“Our relationship with China over the past six months has been very good, which makes this move on trade even more surprising,” Trump said. “I always had the feeling that they were in ambush, and as always, I was proven right!”
Conflict over port fees
Clashes over access to rare earth metals were just one front in escalating economic tensions.
Also on Friday, China announced it would impose a “special port fee” on ships built or operated by the United States, mirroring a similar fee imposed by the United States in April.
The United States had set its own rates as a way to discourage purchases of Chinese vessels. U.S. Trade Representative Jamison Greer said at the time that the fee “sends a signal of demand for American-built vessels.”
China will start implementing its own fares from October 14, according to an announcement from the Ministry of Transport. U.S. ships passing through Chinese ports will be charged 400 yuan (about $56) per net ton, rising to 640 yuan (about $90) by next April.
Meanwhile, Chinese ships arriving at U.S. ports are subject to a fee of $18 per net ton, or $120 per container, meaning a ship with 15,000 containers could be charged $1.8 million.
A Chinese spokesperson told AFP news agency that the retaliation costs were necessary to “protect” the country’s interests.
“We call on the US side to immediately correct its unfair practices and stop its unjust oppression of China’s shipping industry,” the spokesperson said.
