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China Pushes Back Against US Tariff Threats Amid Rare Mineral Licensing Move

Tensions between the world’s two largest economies escalated on Tuesday as China strongly opposed US President Donald Trump’s plan to impose 100% tariffs. A senior official from China’s Ministry of Finance warned that if the United States chooses confrontation, China is prepared to “fight to the end,” but urged Washington to halt threats if it wants genuine negotiations.

In a parallel move, China introduced new regulations requiring companies to obtain government licenses before purchasing and exporting rare minerals. While Chinese authorities stressed that this is not a blanket ban, the measure is widely seen as a counter to US restrictions and sanctions on Chinese companies, including Huawei, and to recent threats of additional tariffs on Chinese shipments.

President Trump labeled China’s licensing requirements as “hostile” and indicated that the US could respond with tariffs exceeding 100%. However, Chinese experts argue that the US initiated the trade restrictions and that China is merely responding in kind. Jin Canrong, professor at Beijing’s Renmin University, stated, “America first attacked China and now is trying to show itself innocent.” Similarly, Wu Xinbo of Fudan University emphasized that the US administration does not fully understand the consequences of its decisions, adding that China’s response is measured and necessary.

The rising tension has cast a shadow over the planned meeting between President Xi Jinping and President Trump in South Korea later this month, with media speculation suggesting a possible cancellation. US Treasury Secretary Scott Bessant, however, affirmed that the meeting is still scheduled to proceed.

Analysts note that China’s strategy combines regulatory measures with a firm diplomatic stance. Wang Yiwei of Renmin University highlighted that “our message is clear: the US should cooperate with China,” signaling Beijing’s readiness to negotiate, but on its own terms.

Global markets have responded nervously, with investors wary that the dispute could spiral into a full-scale trade war. Both sides appear to be weighing economic risk against political posturing as they prepare for high-stakes diplomacy later this month.