China Condemns U.S. Over New Restrictions
TAIPEI, Taiwan — China U.S. trade tensions surged Monday as China condemned the United States over new moves it claims harm Chinese interests. Beijing specifically pointed to fresh U.S. guidelines on AI chip export controls, the halt of chip design software sales to China, and plans to revoke Chinese student visas.
“These practices seriously violate the consensus reached during last month’s trade discussions in Geneva, China’s Commerce Ministry said in a strongly worded statement.
Tariff Reductions Leave Underlying Issues Unresolved
The reference was to a recent China-U.S. joint statement where both sides agreed to slash massive tariffs, aiming to restart stalled trade between the world’s two largest economies. While that de-escalation temporarily eased China U.S. trade tensions, Monday’s statement underscored the fragility of the agreement.
The deal created a 90-day window for negotiators to work toward a broader settlement. Under the arrangement, the U.S. agreed to reduce the 145% tariff imposed by President Donald Trump last month down to 30%, while China agreed to cut its tariffs on U.S. goods from 125% to 10%.
Yet despite these tariff adjustments, businesses and investors face continued uncertainty about the durability of the truce.
China Accuses U.S. of Breaching Trade Deal
China’s Commerce Ministry insisted that Beijing has honored its side of the deal, canceling or suspending various tariffs and non-tariff measures against the U.S. However, it accused Washington of “unilaterally provoking new economic and trade frictions,” which have worsened the uncertainty and instability of bilateral economic ties.
The ministry warned of unspecified retaliation, vowing that China would “continue to take resolute and forceful measures to safeguard its legitimate rights and interests.”
Trump Signals Harder Stance on China
President Trump inflamed China U.S. trade tensions further on Friday by publicly accusing China of violating the agreement. In a social media post, Trump declared, “The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!”
Later that day, Trump told reporters in the Oval Office that he planned to speak with Chinese President Xi Jinping, expressing hope for resolution but maintaining his accusation that China had breached the deal.
Technology Rivalry and Visa Crackdowns Add to Strain
Beyond trade measures, the Trump administration last week announced plans to revoke visas for Chinese students studying in the U.S. — a move affecting over 275,000 individuals. The U.S. also tightened controls on China’s access to cutting-edge technologies like artificial intelligence, aiming to curb Beijing’s ambitions to surpass American dominance in the Asia-Pacific and global tech sectors.
China, for its part, has been advancing efforts to displace U.S. leadership in the region, including through its strategic interests in Taiwan, a key U.S. ally and a major player in the global semiconductor industry.
As China U.S. trade tensions intensify on multiple fronts, the fragile trade truce faces mounting pressure, with global economic stability hanging in the balance.
