China accuses US of ‘economic terrorism’ as trade war tensions escalate

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China accused the Trump administration of committing “economic terrorism” on Thursday, escalating its war of words with the United States amid rising trade tensions between the two countries.

The Ministry of Foreign Affairs said the White House had “carried enormous harm to the economy of different nations and the US itself, “spokesperson Lu Kang told reporters in Beijing on Thursday.

Lu depicted US trade policy as “typical economic terrorism, economic hegemonism, and financial unilateralism.” The announcement pursued also unfavorable talk from Chinese state media, which issued a stern message to Washington on Wednesday: “Don’t say we didn’t warn you.”

The phrase has, in the past, been reserved by the Chinese state media for times of serious conflict.

 

The People’s Daily, the newspaper of the ruling Communist Party, used the loaded phrase in a commentary, in which it said that China would “never accept” the US’ suppression of Chinese development.

The warning came as China’s top economic planning agency suggested it would be willing to curb exports of rare earth minerals, which are crucial for high-tech manufacturing.
On May 15, the Trump administration signed an order that potentially banned major Chinese companies, such as technology giant Huawei, from buying vital components such as computer chips from the US. Many of those chips are made using rare earth, of which China is a major exporter.

Rare-earth
Chinese President Xi Jinping at JL MAG Rare-Earth Co. Ltd. in the city of Ganzhou in east China’s Jiangxi Province on May 20.
On May 10, the US raised tariffs on $200 billion of Chinese imports from 10% to 25%, after talks between the two countries broke down less than a week earlier.
Negotiations have now stalled, with each side blaming the other for the recent setbacks. Speaking in Japan on Monday, US President Donald Trump said he was”not ready” to make a deal.
The US imports far more from China than China does from the US — one of the reasons for the trade war. As China runs out of US imports to tariff, it has turned to its rare earth exports as a new potential battleground.
China accounted for 80% of all rare earth imports by the US between 2014 and 2017, according to the United States Geological Survey,  and are were among the few items not hit by US tariffs.
In statements posted on its website Wednesday, a representative of China’s powerful National Development and Reform Commission again hinted at the possibility of action on rare earths.
“What I can tell you is that if anyone wants to use products made of China’s rare earth exports to contain China’s development, the people of Ganzhou and across China will not be happy with that,” the official said, referring to a city in Jiangxi province.
The Trade war between the US and China has affected Manufacturers worldwide and changing them in a hard-to-reverse way
ControlTek, which makes circuit boards in Vancouver, Wash., has begun shifting supply chains out of China and designing products that don’t require Chinese parts.CreditCreditThomas Patterson for The New York Times.

(Sourced from CNN contents..)