China sharply criticized the United States on Monday, accusing it of taking measures that harm Chinese interests. These actions include new export controls on AI chips, halting sales of chip design software to Chinese companies, and plans to revoke visas for Chinese students studying in the U.S.
In a statement, China’s Commerce Ministry said these moves “seriously violate the consensus” reached in a recent joint agreement aimed at reducing the massive tariffs imposed by both countries. The deal had been seen as a hopeful step toward restarting stalled trade talks between the world’s two largest economies.
However, despite the truce announced last month, deep-rooted disagreements remain unresolved. Monday’s statement highlighted how fragile such agreements can be, and how quickly tensions can flare up again.
The agreement put tariffs on hold for 90 days to allow negotiators from both sides time to work toward a more comprehensive deal. But even during this pause, tariff rates remain higher than before the trade war escalated, fueling uncertainty for businesses and investors alike.
According to U.S. Trade Representative Jamieson Greer, the United States agreed to reduce a 145% tariff imposed last month down to 30%, while China agreed to lower its tariffs on U.S. goods from 125% to 10%.
China’s Commerce Ministry said it has upheld its commitments by canceling or suspending reciprocal tariffs and non-tariff barriers against American products. At the same time, the ministry accused the U.S. of “unilaterally provoking new economic and trade frictions,” which have increased instability in their economic relationship.
The statement also warned of possible retaliation, asserting that China would “continue to take resolute and forceful measures to protect its legitimate rights and interests.”
Tensions escalated further on Friday when President Donald Trump declared on social media that he would no longer be “nice” with China on trade, accusing Beijing of violating the deal. Later, he said he planned to speak with Chinese President Xi Jinping in hopes of resolving the issues, though he insisted China had broken its commitments.
“The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US,” Trump wrote. “So much for being Mr. NICE GUY!”
China’s Commerce Ministry fired back, accusing the U.S. of deflecting blame and unfairly accusing China of breaking the consensus, a claim they say is “seriously contrary to the facts.”
Meanwhile, U.S. Commerce Secretary Howard Lutnick suggested that China was deliberately delaying the implementation of the Geneva deal. Speaking on Fox News, he said the U.S. was taking steps to demonstrate the impact of China’s actions and expressed optimism that Trump and Xi would eventually work things out.
In addition to trade disputes, the U.S. escalated tensions last week by announcing plans to revoke visas for Chinese students, who currently number over 275,000 on American campuses.
Both countries are engaged in a high-stakes competition over cutting-edge technologies like artificial intelligence. The U.S. aims to limit China’s access to advanced computer chips, while China is striving to surpass the U.S. as the dominant power in the Asia-Pacific region, including through influence over Taiwan, a key U.S. ally and technology leader.