China accuses U.S. of violating trade truce, vows "forceful measures"
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Chinese leader Xi Jinping in Moscow, Russia, last month. Photo: Contributor/Getty Images
China accused the U.S. violating the trade deal that the world's two largest economies signed last month and vowed to take "resolute and forceful measures," per a briefing on Monday morning local time.
Why it matters: It's the latest sign of deteriorating relations between the two nations since their Switzerland meeting last month led to a deal to lower tariffs on each other for 90 days while they negotiated on trade.
- President Trump accused Beijing on Friday of violating the agreement, one day after Treasury Secretary Scott Bessent described negotiations as "a bit stalled."
Driving the news: A Chinese Commerce Ministry spokesperson said Beijing "firmly rejects these unjustified accusations," per translations of the comments that were carried by state media.
- The spokesperson alleged the U.S. had "seriously undermined" and "violated" the trade agreement by issuing "export control guidelines for AI chips, stopping the sale of chip design software (EDA) to China, and announcing the revocation" of visas for Chinese students.
- "If the U.S. insists on its own way and continues to damage China's interests, China will continue to take resolute and forceful measures to safeguard its legitimate rights and interests," the spokesperson added, without elaborating further.
The other side: "At the direction of President Trump, the Administration is aggressively moving to onshore critical supply chains, including the production of magnets, in the United States," White House press secretary Karoline Leavitt said in response to Axios' request for comment on Beijing's remarks.
- "At the same time, the Administration is actively monitoring China's compliance with the Geneva trade agreement and President Trump will speak directly with President Xi [Jingping] very soon."
- While Trump didn't go into details on his claims that Beijing had "totally violated" the trade deal, administration officials have pointed to delays in sending critical minerals to the U.S., which are needed for American auto, electronics and defense industries, that formed part of the agreement.
- "What China is doing is they are holding back products that are essential for the industrial supply chains of India, of Europe, and that is not what a reliable partner does," Bessent said during a Sunday interview on CBS News' "Face the Nation."
What we're watching: Bessent said on CBS he's "confident" that the two sides' issues "will be ironed out" once Trump and Xi have spoken.
- "But the fact that they are withholding some of the products that they agreed to release during our agreement — maybe it's a glitch in the Chinese system, maybe it's intentional," he told CBS' Margaret Brennan. "We'll see after the president speaks with [Xi]."
More from Axios:
- How Trump's China attitude is similar to Biden's
- Trump, Xi to talk this week about trade, key advisor says
- Lutnick: Trump "felt horrible" about impact of China tariffs
- The rare minerals battle behind Rubio's ban on Chinese students
Editor's note: This article has been updated with comment from White House press secretary Karoline Leavitt.
