Trade dispute: New allegations between the US and China

In the trade conflict between China and the United States, the two sides have once again exchanged accusations. After US President Donald Trump accused the Chinese of not adhering to the agreements reached in Geneva almost three weeks ago, Beijing has now followed up with sharp criticism of the United States.

Following the Geneva talks, the US side "continuously imposed new discriminatory restrictions on China," the Beijing Ministry of Commerce said. Specifically, it cited measures that further restricted the sale of AI chips and chip design software to China, as well as the announcement of a visa cancellation for Chinese students in the US. Instead of self-critically examining its own behavior, the US side is unfoundedly accusing China of violating the consensus, the ministry added.

In mid-May, China and the US agreed to reduce mutual tariffs in the ongoing trade dispute in Geneva. A joint statement by the two largest economies stated that this would temporarily apply for 90 days. The agreement provides for a reduction in US tariffs on Chinese imports from 145 to 30 percent, while Beijing's surcharges on imports from the US will be reduced from 125 to 10 percent. At the time, the US president described opening up China as his most important goal and stated that China had agreed to this. Recently, however, the US administration has toughened its tone towards China again. "The bad news is that China, perhaps not surprisingly to some, has completely violated its agreement with us," Trump declared last Friday on his online platform Truth Social. "So much for being Mr. Nice Guy!" he added. He did not elaborate on the basis of his violation of the agreement in the post.

According to media reports, other US government officials criticized China for reducing tariffs as agreed, but for maintaining other trade barriers, such as export restrictions on rare earths. At a press conference in the Oval Office a few hours later, Trump simply stated that China had violated "a large part of the agreement." He added, however, that he was certain he would speak with Chinese President Xi Jinping—"and hopefully we can find a solution." There was initially no confirmation from Beijing of such a meeting.

The trade dispute and tariff threats are impacting the stock markets, and the US President's announcements are causing prices to fall. The new mutual accusations between the US and China have also increased nervousness on the stock markets.