China has threatened unspecified retaliation, with its Commerce Ministry expressing outrage over new U.S. AI chip export control guidelines and plans to revoke Chinese student visas. Beijing alleges these actions “seriously violate” a recent tariff truce, signaling a potential for renewed escalation in the trade war and deepening the strategic competition between the two nations.
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 provided a temporary pause to President Trump’s trade wars, appears to be under significant strain as underlying differences and suspicions resurface, particularly in the tech sector.
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 and instability. The ministry’s warning of “resolute and forceful measures” suggests that China is prepared to respond forcefully, potentially escalating the trade conflict.