China Rejects US Allegations of Breaking Geneva Trade Deal
China has firmly denied claims that it violated the trade agreement reached with the United States in Geneva last month. Responding to accusations from US President Donald Trump, the Chinese Ministry of Commerce emphasized its commitment to implementing the consensus while criticizing Washington for imposing discriminatory restrictions.
Background of the Geneva Agreement
In mid-May, Beijing and Washington agreed to a 90-day pause on triple-digit tariffs. China also pledged to remove export restrictions on critical metals essential for US semiconductor, electronics, and defense industries.
US Accusations and China's Rebuttal
President Trump accused China of breaching the bilateral agreement by failing to roll back tariffs as promised. However, China's commerce ministry refuted these charges as "groundless" and stated that China has actively upheld the agreement. The ministry pointed out that the US, meanwhile, has escalated trade tensions by introducing several restrictive measures such as:
- Issuing export controls on artificial intelligence (AI) chips
- Halting sales of chip design software to China
- Revoking visas for Chinese students
These unilateral actions, according to China, have exacerbated instability in bilateral economic relations.
Rising Trade Tensions and US Tariff Increases
On the same day the accusations were made, the US announced it would double import tariffs on steel and aluminum to 50%. Although China is the world's largest steel producer and exporter, most Chinese steel has been effectively blocked by a 25% US tariff imposed in 2018. China remains the third-largest supplier of aluminum to the US.
China's Response Moving Forward
While the Chinese ministry did not specify the exact forceful measures it intends to take in response to US actions, it affirmed its resolve to protect national interests amid increasing economic friction. The ongoing dispute highlights the fragility of recent agreements and the potential for further escalation in the global trade environment.
