****

China has responded sharply to US President Donald Trump’s allegations that it violated a recent trade truce, accusing the United States of "provoking new economic and trade frictions." The dispute revolves around the trade agreement reached last month, which had temporarily halted the two countries' tit-for-tat tariff war.

In a statement released on Monday, China’s Commerce Ministry asserted that it was "strictly implementing" the consensus achieved during those trade discussions. The ministry criticized the US for actions that allegedly "seriously undermine" the agreement. "The United States has been unilaterally provoking new economic and trade frictions, exacerbating the uncertainty and instability of bilateral economic and trade relations," the ministry stated. The statement warned that China would take "resolute and forceful measures" to safeguard its interests if the US continued its current course.

The tensions have flared just weeks after the Geneva trade talks in which both nations agreed to reduce the hefty tariffs imposed on each other back in April. The deal provided a 90-day window to negotiate a more comprehensive agreement, but the effort seems endangered as accusations fly on both sides. US officials have described the progress as "stalled" and hinted that intervention from leaders Trump and Xi Jinping might be necessary to break the deadlock.

A significant point of contention is Beijing's export controls on rare earth minerals, vital for products ranging from iPhones to military equipment. US officials had anticipated that China would relax these restrictions following the Geneva discussions, but this has not happened, causing dissatisfaction within the Trump administration. China's Commerce Ministry lashed out at recent US measures, including AI chip export controls, restrictions on sales of critical technology, and revocation of Chinese student visas – actions which it termed "discriminatory."

Moreover, China has accused the US of undermining the Geneva consensus by warning companies against using AI chips made by Huawei. Beijing also faces domestic pressures with its manufacturing activity having contracted for a second month in May. The tariffs on Chinese goods entering the US, China’s largest export market, remain notably high.

The dispute has not been limited to trade tariffs. Beijing maintains that its export control regime is "in line with international practices" and not targeted at specific countries. However, US Treasury Secretary Scott Bessent pointed out that China was withholding products they had agreed to release, referring to critical minerals, a matter he believes will be resolved in an upcoming call between Trump and Xi Jinping.

In light of the ongoing conflict, former US Ambassador to China Nicholas Burns has criticized Beijing for its trade practices, emphasizing that China needs to prove it can be a responsible trading partner by addressing issues like intellectual property violations and forced technology transfer.

As both nations navigate these turbulent waters, the spotlight remains firmly on how this high-stakes economic standoff will be resolved and what impact it will have on global trade stability.