Beijing has said it is prepared to take revenge after Donald Trump unveiled plans to impose fresh 100% tariffs on China within weeks.
The world’s second-largest economy blamed the US President for reigniting trade tensions with his latest threat of import taxes.
The Chinese commerce ministry said on Sunday that the US has “continuously introduced a series of new restrictions” since the two countries made an initial breakthrough in trade negotiations last month.
It said: “The US actions have severely harmed China’s interests and undermined the atmosphere of bilateral economic and trade talks, and China is resolutely opposed to them.
“China’s position on tariff wars has been consistent: we do not want to fight, but we are not afraid to fight.”
The latest spat comes after Trump vowed to impose export restrictions on “any and all critical support” after accusing China of holding the world to ransom with its own export controls.
This ended a period of relative calm between the two countries, which had previously engaged in tit-for-tat tariffs earlier this year.
China has so far stopped short of issuing new tariffs in response to Trump’s latest offensive, suggesting there is potential for de-escalation.
However, Beijing has angered Trump by announcing new export controls on critical minerals and rare earths, which are crucial for making anything from smartphones to weapons.
China controls 70% of the world’s rare earths and 90% of the processing, giving it powerful leverage in its trade war with the US.
Trump said on Friday that its export controls announcement was “obviously a plan devised by them years ago”.
He said in a post on Truth Social: “It is absolutely unheard of in international trade, and a moral disgrace in dealing with other nations. It is impossible to believe that China would have taken such an action, but they have, and the rest is history.”
Beijing said its export controls were the result of the US implementing hostile trade measures even after bilateral talks, such as blacklisting Chinese companies and imposing fees on China-linked ships.
China also claimed its export controls reflected concerns about the materials military uses at a time of “frequent military conflicts”.
However, Beijing has since appeared to soften its stance by claiming that its new controls do not amount to a complete export ban, claiming licences will be granted if they meet requirements.
Meanwhile, JD Vance, the US Vice-President, said that Trump was prepared to be a “reasonable negotiator” with China, but also warned that America had “more cards to play” if tensions escalate.
It comes before a proposed summit between Trump and Xi Jinping, the Chinese President, later this month.
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