China has accused the United States of 'seriously violating' the fragile trade truce agreed less than a month ago, as tensions between the world's two largest economies escalate once again. The truce, reached on 12 May in Geneva, paused a trade war that had seen both sides impose tariffs of up to 125% on each other's goods, threatening global economic stability.
Beijing's commerce ministry stated on Monday that the US had introduced 'discriminatory restrictive measures' against China, including export controls on AI chips, a halt to the sale of chip design software, and the revocation of Chinese student visas. The ministry said China 'is determined to safeguard its rights and interests' and denied US accusations that it had undermined the 12 May agreement.
The US had complained that China failed to deliver on promises to relax restrictions on the export of critical minerals, such as rare earths and magnets, which are essential for US manufacturing. US Treasury Secretary Scott Bessent said on Sunday that China was 'holding back products that are essential for the industrial supply chains of India, of Europe. And that is not what a reliable partner does.'
Outside the trade talks, relations have soured further. Last week, China condemned US Secretary of State Marco Rubio's announcement that the US would 'aggressively' revoke visas for Chinese students. Over the weekend, the two countries traded barbs after US Defence Secretary Pete Hegseth called China an 'imminent' threat, which China's foreign ministry said was 'filled with provocations and intended to sow division.'
The US has indicated that another phone call between President Donald Trump and President Xi Jinping is expected soon, but the current trajectory suggests that the fragile peace may be unravelling.
