“PATH FOR NEGOTIATIONS”
China’s decision not to immediately respond in kind to Trump’s opening salvo in this latest round of trade tensions could leave the door open for both countries to negotiate a de-escalation, analysts said.
“By clarifying the rationale behind its retaliatory measures, Beijing is also outlining a potential path forward for negotiations. The ball is now in the US court,” said Alfredo Montufar-Helu, managing director at strategic advisory firm GreenPoint.
But Hutong Research said in a note on Saturday that if Beijing chooses not to respond to Trump’s 100% tariff hike, it may signal that it no longer prioritises a long-term deal with him, reflecting diminished confidence in his ability to restrain hawks or stick to commitments.
“Key watchpoints now: Whether Beijing moves to freeze or complicate the TikTok sale, given its political symbolism. Proceeding with the sale under current conditions would be seen as a major concession (from Beijing),” the research firm said.
Other tools in Beijing’s arsenal include regulatory action targeting US companies. China’s State Administration for Market Regulation (SAMR) said last month that leading US AI chip manufacturer Nvidia violated the country’s anti-monopoly law during US-China trade talks in Madrid.
The market regulator on Friday announced an antitrust investigation into US chip manufacturer Qualcomm over its June 2025 acquisition of Israeli chip designer Autotalks.
A few hours after the commerce ministry’s response to Trump’s post and tariff hike, SAMR said Qualcomm had completed the acquisition without informing the regulator, adding that the US firm had acknowledged this.
“Based on clear facts and conclusive evidence, our bureau lawfully initiated an investigation into Qualcomm’s unlawful … acquisition of Autotalks,” SAMR said.
CHINA SAYS EXPORT CONTROLS ARE NOT EXPORT BANS
The commerce ministry also countered Trump’s narrative that China was using its dominance in processed rare earths and rare earth magnets to attack all countries, not just the US
“We have been contacted by other Countries who are extremely angry at this great trade hostility, which came out of nowhere,” Trump said on Friday on Truth Social.
China produces over 90 per cent of the world’s processed rare earths and rare earth magnets. The 17 rare earths are vital materials in products ranging from electric vehicles to aircraft engines and military radars.
Exports of 12 of them are restricted after China’s commerce ministry on Thursday added five – holmium, erbium, thulium, europium and ytterbium – along with related materials.
The commerce ministry statement on Sunday sought to reassure foreign companies spooked by the latest export curbs, promising to promote compliant trade by granting general-purpose licenses and license exemptions.
“China’s export controls are not export bans,” it said. “Any export applications for civilian use that comply with regulations will be approved, and relevant enterprises need not worry.”
https://www.channelnewsasia.com/east-asia/us-china-trade-tensions-rare-earth-curbs-5396801
