China Tells US to Back Off on Threats, Warns of Retaliation

Bloomberg News
October 12, 2025

President Donald Trump on Friday announced an additional 100% tariff on China as well as export controls on “any and all critical software” beginning Nov. 1, hours after threatening to cancel an upcoming meeting with Chinese leader Xi Jinping. That came after China added new port fees on US ships, started an antitrust investigation into Qualcomm Inc., and unveiled sweeping new curbs on its exports of rare earths and other critical materials.

Beijing justified its moves as defensive actions and accused the US of introducing new restrictive measures targeting China since talks between the two in Madrid in September, according to a Ministry of Commerce statement on Sunday. Last month, the US Commerce Department unveiled a dramatic expansion of its export controls, which closed loopholes in current measures to block Beijing from cutting-edge chips.

“Threatening with high tariffs at every turn is not the right way to get along with China,” the Commerce Ministry said. “If the US persists in its own course, China will resolutely take corresponding measures to safeguard its legitimate rights and interests.”
Last week Beijing unveiled broad new curbs on its exports of rare earths and other critical materials. Overseas exporters of items that use even traces of certain rare earths sourced from China will now need an export license, it announced Thursday, citing national security grounds. Certain equipment and technology for processing rare earths and making magnets will also be subject to controls.

Vice President JD Vance told China on Sunday that the US has more leverage in the escalating trade dispute, saying the Trump administration is ready to be reasonable if Beijing is.

“If they respond in a highly aggressive manner, I guarantee you, the president of the United States has far more cards than the People’s Republic of China,” Vance said on Fox News’s s.

China’s export control is not a ban on exports, and applications that meet the regulations will be approved, the Commerce Ministry said Sunday. Before the measures were announced, China had notified relevant countries and regions through the bilateral export control dialogue mechanism, it added.