China’s Commerce Minister Wang Wentao on Thursday blamed the recent escalation in trade tensions with the US on American actions following the latest bilateral round of talks in Madrid last month. 

“The recent fluctuations in China-US economic and trade relations are mainly due to the US’ intensive introduction of a series of restrictive measures against China after the Madrid” talks, Wang told Apple Inc chief executive officer Tim Cook during a meeting in Beijing, according to a readout posted on the Commerce Ministry’s website.

Late last month, the Commerce Department published a rule that widened the application of sanctions to companies affiliated with blacklisted Chinese firms. That came after the Madrid round of negotiations led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng. Beijing has justified its own move to tighten control of rare-earth elements as a defensive reaction to US steps.

US measures “seriously harmed China’s interests and undermined the atmosphere of the bilateral economic and trade talks,” Wang said on Thursday.

The US has called for joint action with allies and partners to respond to China’s new rules on rare earths.

A number of foreign chief executive officers are in Beijing as part of an annual advisory board meeting for Tsinghua University’s School of Economics and Management. The group met with He Lifeng on Thursday in Beijing. 

China's Foreign Minister Wang Yi appeared to strike a more diplmomatic tone during a meeting with Blackstone Inc’s Steve Schwarzman, saying that “decoupling” isn’t a realistic or rational option, with confrontation only harming both nations.

“The two sides should engage in effective communication, properly resolve differences, and promote stable, healthy and sustainable development of China-US relations,” Wang said, according to a readout on the Foreign Ministry’s website.

Source: Bloomberg

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