China defeated President Trump on Friday.
In a series of swift policy announcements, including a 34% full tariff, three government agencies in Beijing have shown that China has no intention of retreating in the trade war, and Mr. Trump started this week with his high tariffs on imports from around the world.
China's Treasury Department said it will match Mr. Trump's plan to tariff 34% on Chinese goods and 34% on imports from the United States.
Additionally, China's Ministry of Commerce said it is adding 11 U.S. companies to its “unreliable entities” list, which basically prohibits them from doing business in China or Chinese companies. The ministry imposes strict restrictions on the export of seven rare earth elements, which are mined almost entirely in China and are used in everything from electric vehicles to smart bombs.
The Commerce Department also announced that it will begin two trade surveys on the export of medical imaging equipment in the United States, one of the few manufacturing categories that the United States remains competitive internationally.
China's customs headquarters said it will stop importing chickens from five of the U.S. largest agricultural products exporters and sorghum, importing from the sixth company.
China's new tariffs will hit President Trump's tariffs simply because China sells to the United States far more than it buys. Last year, China purchased US$147.8 billion worth of U.S. semiconductors, fossil fuels, agricultural supplies and other products. It sold $426.9 billion worth of smartphones, furniture, toys and many other products.
But while President Trump's tariffs exempt some large imports, such as semiconductors and drugs, China's tariffs are not exempted.
China's Treasury Ministry issued a statement strongly criticizing Mr. Trump's tariffs, which will begin on Saturday and fully begin next Wednesday. “This practice in the United States is inconsistent with international trade rules and seriously undermines China's legitimate rights and interests, which is a typical unilateral bullying,” the ministry said.
Chinese tariffs are scheduled to take effect next Thursday – 12 hours after U.S. tariffs take effect.
China's restrictions on rare earth metal exports appear to have frozen a two-month restriction during the territorial dispute during the two-month period when shipped to Japan to Japan in 2010, and although the export embargo has never been published, it is handled by direct orders from companies with export quotas.
This is a developing story. Please check it for updates.
Claire Fu Contributed reports from Seoul.
