China says the US has “severely violated” their trade truce and will take strong measures to defend its interests.
China’s Ministry of Commerce said Washington has “seriously undermined” the agreement reached during talks in Geneva last month, when both countries lowered tariffs on goods imported from each other.
The spokesperson added that US actions have also severely violated the consensus reached during a phone call in January between China’s leader Xi Jinping and President Donald Trump.
The US President did not give details but Trade Representative Jamieson Greer later said China had not been removing non-tariff barriers as agreed under the deal.
Under the trade truce struck in May at a meeting in Geneva, the US lowered tariffs imposed on goods from China from 145% to 30%. China’s retaliatory tariffs on US goods dropped from 125% to 10%.
On Monday, Beijing said US violations of the agreement included stopping sales of computer chip design software to Chinese companies, warning against using chips made by Chinese tech giant Huawei, and cancelling visas for Chinese students.
The deal reached in Geneva came as a surprise to many analysts as it seemed that the two sides were incredibly far apart on many trade issues.
This showed that during face-to-face talks, Washington and Beijing can reach agreements.
But as the rhetoric is once again ratcheting up, the fragility of the current agreement has been highlighted and gives an indication of just how challenging it may be to reach a longer-term trade truce.
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