Chinese President Xi Jinping has drawn a clear red line in a bid to stem new U.S. exports controls, threatening to reignite a tit-for-tat trade spiral with Donald Trump just weeks before a planned meeting between the leaders of the world’s biggest economies.
After China unveiled wide-ranging global export controls on products containing even traces of certain rare earths this past week, Trump fired back by threatening to cancel a planned in-person meeting with Xi — their first in six years. The U.S. leader also announced plans to double tariffs on Chinese goods to 100%, along with sweeping curbs on "any and all critical software.”
On Sunday, Beijing justified its moves as defensive actions and accused the U.S. of introducing new restrictive measures targeting China since talks between the two in Madrid in September. Last month, the U.S. Commerce Department unveiled a dramatic expansion of its export controls, which closed loopholes in current measures to block Beijing from cutting-edge chips.
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