China said on Monday that the Trump administration is destroying temporary May 12 trade agreement Between the two countries, by issuing AI chip export control guidelines, stop selling chip design software to China and plan Revoke Chinese student visa.
The Trump administration's actions "seriously undermined the existing consensus reached in Geneva's economic and trade negotiations and seriously undermined China's legitimate rights and interests," China's Commerce Ministry said in a June 2 statement.
Beijing has violated a trade deal with the United States, the two countries announced May 12 after President Trump said Friday Temporary but significant relief Tariffs on each other's imports at the beginning of the year. Experts say the escalation of speech has heightened concerns that two or two largest global economies may encounter further stumbling blocks when conducting trade negotiations.
“The new hostilities between the United States and China show that many of the questions left behind after the Geneva ceasefire in mid-May are still unsatisfactory answers.” “It is unclear whether U.S. trade policy was implemented by President Donald Trump, his trade negotiators, or his national security team.”
He added: "The overall goal of trade aggression, besides showing original power, is in trouble as always."
Meanwhile, Treasury Secretary Scott Bessent said on Sunday that when Mr. Trump had a dialogue with Chinese President Mr. Xi Jinping, he was "confident" that the U.S.-China trade dispute "would be eliminated." "I believe we will see something soon. ” "Faced with Margaret Brennan". ”
Transaction on May 12 Lasts for 90 dayscreate time for us and Chinese negotiators to reach more substantial agreements. But the pause still makes tariffs higher than before Trump started accelerating last month. Businesses and investors must also be uncertain whether the truce will continue.
U.S. Trade Representative Jamieson Greer said the U.S. agreed to reduce the 145% tax rate imposed by Mr. Trump on China to 30%. China agreed to reduce its tariff rate on U.S. goods from 125% to 10%.
China canceled or suspended tariffs and non-tax measures taken on the U.S. “Reciprocal tariffs” after the agreement, the Ministry of Commerce said on Monday. But it claimed that the Trump administration “unilaterally caused new economic and trade frictions, exacerbating uncertainty and instability in trade relations between the two countries.”
The Trump administration intensified its conflict with China last week, announcing it would begin revoking visas for Chinese students on U.S. campuses, including more than 275,000 students from China.
Experts added that turmoil between the United States and China will increase economic risks given the links between the two countries and their importance in global trade.
"If the United States and China completely stand out in another escalating tariff, it will be a big deal for the global economy," Carl Weinberg, chief economist at high-frequency economics, told investors in client notes. "Demand for industrial commodities will plummet. Supply chains across multiple borders will be closed."