China has issued a warning to the United States not to engage in “discriminatory actions” against its companies, following reports that the U.S. is considering a ban on vehicles utilizing Chinese and Russian technology.
Media outlets, including Bloomberg, reported on Sunday that the U.S. is contemplating new regulations that would prohibit hardware and software made in China from being used in American vehicles.
During a press briefing, Chinese Foreign Ministry spokesman Lin Jian urged the U.S. to adhere to market principles and to provide an open, fair, transparent, and non-discriminatory business environment for Chinese enterprises.
Lin expressed strong opposition to the U.S. broadening its interpretation of national security to justify actions against Chinese firms and products, stating, “China will resolutely safeguard its legitimate rights and interests.”
The proposed regulations would mark another escalation in the ongoing trade dispute between the two nations. This tension has been building since May, when the U.S. government announced significant tariff hikes on a range of Chinese imports, including electric vehicles and semiconductors.
The tariff increases target strategic sectors and affect approximately $18 billion worth of imports, with the tariff rate on electric vehicles set to quadruple to 100% this year, and semiconductor tariffs increasing from 25% to 50% by next year.
These trade measures were finalized ahead of the upcoming presidential election in November, as both major political parties in the U.S. seek to demonstrate a tough stance on China amid escalating competition.
The recent tariff increases follow a comprehensive review of levies initially imposed during Donald Trump’s presidency, which had affected around $300 billion in goods from China.
In addition to the significant tariffs, the U.S. Trade Representative’s office confirmed that a 50% duty on semiconductors, a substantial increase from previous rates, is scheduled to begin in 2025. President Joe Biden has accused China of “cheating” in trade practices rather than engaging in fair competition.
The unfolding developments signal a deepening rift between the two global powers, raising concerns about the implications for international trade and economic relations moving forward.
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