On Monday, China rejected allegations from Washington that it had violated the Geneva trade agreement, instead placing the blame on the U.S. for failing to uphold the terms of the deal. This exchange indicates a troubling deterioration in discussions between the two largest economies in the world.
Following a brief period of relative calm, characterized by a meeting between U.S. Treasury Secretary Scott Bessent and his Chinese counterpart He Lifeng in Geneva—which had led to a temporary suspension of tariffs on mutual goods for 90 days—the trade tensions have reignited.
The Trump administration has intensified restrictions on the export of semiconductor design software and chemicals to China while simultaneously announcing visa revocations for Chinese students, inciting significant backlash from Beijing.
A spokesperson for China’s commerce department stated that such actions “seriously undermine” the agreement made in Geneva, complicating the already fragile trade relations.
Contrary to expectations, China has maintained strict control over its exports of rare earth minerals.
“The U.S. government has continued to unilaterally provoke new economic and trade frictions, increasing uncertainty and instability in the bilateral economic and trade relations,” the spokesperson emphasized.
Recently, President Donald Trump accused China of breaching the preliminary trade agreement in a social media post, stating, “China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!”
The Chinese spokesperson described these accusations as “seriously contrary to the facts,” asserting that China had been diligent in implementing and supporting the agreements, referencing its own adjustments to tariffs made in April in response to U.S. tariffs.
Bessent noted in a Finance Newso News interview last week that the trade discussions are “a bit stalled,” suggesting that a direct conversation between the leaders of the two nations may be necessary.
On Sunday, Kevin Hassett, director of the National Economic Council, indicated that a trade dialogue between Trump and President Xi Jinping could occur as early as this week.
The discord between the U.S. and China extends beyond economic concerns, as military tensions also heighten.
During the annual Shangri-La Dialogue defense summit in Singapore on Saturday, Pentagon chief Pete Hegseth warned of the “real” and “imminent” threats posed by China’s increasing military assertiveness in the Indo-Pacific, urging allied nations to increase defense budgets to counter Beijing’s influence.
This year, China’s defense minister did not attend the summit, marking a notable departure from its usual practice of sending its top military official—a first since 2019.
In a statement issued in reaction to Hegseth’s speech, a spokesperson from China’s defense ministry criticized the remarks for fostering a “cold-war mentality” and for “severely challenging China’s sovereignty and rights.”
China’s embassy in Singapore further responded via social media, labeling the U.S. as the primary “troublemaker” affecting regional peace and stability, following Hegseth’s statements.
