China has warned of “further turbulence” in its trade relations with the United States, accusing Washington of violating a recent tariff truce through new AI chip export controls and plans to revoke Chinese student visas. This strong reaction from Beijing suggests that the fragile 90-day negotiation period is at risk of complete breakdown.
The Chinese Commerce Ministry released a statement on Monday, asserting that the U.S. practices “seriously violate the consensus” reached to de-escalate tariffs and restart stalled trade. This agreement, which initially brought a temporary pause to President Trump’s trade wars, appears unable to resolve the deeper strategic disagreements between Washington and Beijing, particularly in the realm of advanced technology.
China maintains it has upheld its end of the deal by canceling or suspending its own retaliatory tariffs. However, Beijing accuses the U.S. of “unilaterally provok[ing] new economic and trade frictions,” thereby exacerbating uncertainty. The ministry’s threat of unspecified retaliation suggests that China is prepared to respond forcefully, potentially leading to a renewed escalation of trade hostilities.