China Responds to Trump’s Geneva Deal Claims, Accuses U.S. of Eroding Global Consensus

China has recently pushed back against U.S. accusations that it violated a Geneva trade agreement. Instead, Beijing claims the United States has breached the deal, marking a troubling turn in discussions between the two major economies.

Trade tensions have risen following a brief truce after a meeting between U.S. Treasury Secretary Scott Bessent and Chinese official He Lifeng in Geneva. This meeting initially led to a 90-day pause on most tariffs, but things have since soured. Under the Trump administration, new export restrictions on semiconductor software and chemicals aimed at China have caused further friction. The Chinese government is upset, stating these actions undermine the Geneva agreement. They vow to protect their interests if the U.S. continues down this path.

China is also tightening its grip on rare earths exports, contrary to U.S. expectations. A recent article from Chinese state media emphasized efforts to prohibit illegal mining and exports of essential minerals. Stephen Olson, a senior fellow at the Yusof Ishak Institute, noted that China is committed to taking a firm stance in these negotiations, aware that any agreement with the U.S. might only provide short-term relief rather than a lasting resolution.

Former White House official Dennis Wilder pointed out that the lack of coordination among U.S. government agencies contributes to deteriorating relations. He believes Bessent is eager for President Trump to connect with President Xi to clarify policies.

There’s growing pressure for a high-level call between the two leaders, yet experts note the timing may not be favorable given existing rifts. The U.S. appears eager for this connection, which aligns with Trump’s reputation as a strong negotiator. However, Chinese tradition suggests that leaders should only meet after lower officials have already laid groundwork for agreements.

Beyond trade, tensions are also escalating in military matters. At the recent Shangri-La Dialogue, U.S. Defense Secretary Pete Hegseth described the military threat from China in the Indo-Pacific as "real" and "imminent." The dialogue’s significance is underscored by the absence of China’s defense minister, who traditionally would attend this yearly summit.

In response to Hegseth’s remarks, China’s embassy noted that the U.S. is often the greatest source of regional instability. This escalating situation emphasizes how multifaceted the U.S.-China relationship has become, combining economics and military considerations in an increasingly complex global landscape.

In recent surveys, over 60% of Americans believe that maintaining a strong but fair economic policy toward China is crucial for national security. Engaging with China while also being firm on key issues could be a way forward.

As these dynamics evolve, the path toward a constructive relationship between the two countries remains unclear. Only time will tell if dialogue can bridge the growing divide. For further insights into the implications of these trade tensions, you can refer to this report from CNBC.

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