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Donald Trump’s newest threat to introduce an extra complete levy on products from China has been called a “prime illustration” of American hypocrisy, according to the Beijing administration.

A Commerce Ministry spokesperson also stated that Beijing could implement its own undisclosed “responsive actions” if the US President follows through on his pledge, adding that the country was “not afraid” of a possible trade conflict.

On Friday, the former president hit back at the Chinese government’s action to reinforce its regulations for foreign shipments of rare earth minerals, alleging Beijing of “turning aggressive” and attempting to hold the global community “captive”.

He also warned to cancel a scheduled talks with Chinese leader President Xi, which was arranged for a conference in Seoul before the month ends.

The former president’s remarks on that day shook financial markets, with the benchmark US stock index falling by 2.7%, marking its biggest drop since April.

These statements renewed concerns of a commercial dispute between the two economic giants.

In May, the respective governments had agreed to eliminate high import duties on each other’s products, which had led to concerns of bilateral trade stopping between the two nations.

Consequently, US tariffs on Chinese goods facing an additional import tax compared with the start of the year, while US goods entering the Chinese market incur a ten percent duty.

The most recent comments from China – published by the Commerce Ministry in the manner of official answers to press queries – reflected rhetoric from the height of the latest commercial tensions.

The remarks condemned US export restrictions on semiconductors and chips while supporting China’s own export controls on key elements as “normal actions” to ensure state interests and that of all nations.

The official remarked that for “a long time”, the US had “expanded the interpretation” of national security, abused overseas sale restrictions and “enforced” biased policies against China.

“Resorting to trade levy ultimatums is not the correct approach to interact with Beijing,” the official commented.

“Beijing’s stance” on a trade conflict has remained steady: we do not want one, but we are fearless of one.”

Last week, Beijing declared it was reinforcing foreign shipment restrictions on rare earths and further resources critical for high-technology production.

This move was regarded as a important measure, as the state processes about the vast majority of the global rare earth supply, which are utilized in products such as renewable energy components and handheld devices.

Latest statements from the US and China are being interpreted by observers as a means of bolstering negotiating stances in preparation for future trade talks.

It is unclear whether a talks between Donald Trump and President Xi, scheduled at a high-level meeting in Seoul before month’s end, will still proceed.