China has recently accused Donald Trump of showing "double standards" after he threatened to impose 100% tariff on Chinese goods.
Tensions between the United States and China escalated after President Trump threatened to cancel a meeting with Chinese President Xi Jinping.
This warning came in response to Beijing's stricter rules on rare earth exports.
Trump made the warning on social media, saying he now saw "no reason" to meet with President Xi, claiming that China was acting hostilely and trying to control the world by limiting access to these major resources.
Meanwhile, Trump also threatened a massive increase in tariffs on Chinese products.
In response, a Chinese official warned that China might take its own actions if Trump follows through with his threat and said the country is not afraid of trade war, as per BBC.
China's Commerce Ministry released written statement to reporters in which the country also crticized the US for restricting exports of computer chips and semiconductors.
The country also defended its own export limits on rare earth materials saying those were normal steps to protect both its own and global security.
"Resorting to tariff threats is not the right way to engage with China. China's position on a tariff war has always been consistent: we do not want one, but we are not afraid of one," the spokesperson said.
China dominates global production of rare earths, which are key components in cars, smartphones, aeroplane engines and many other items.
