Key Takeaways
- China warns “trade conflicts have no winners” after Trump threatens to halt cooking oil imports
- Beijing defends rare earth export restrictions as necessary for global security
- US purchased 1.27 million tonnes of Chinese cooking oil last year, accounting for over 40% of exports
- Trump signals potential 100% tariffs on Chinese goods starting November 1
China has strongly responded to US trade threats, warning that trade conflicts create “no winners” after former President Donald Trump raised the possibility of halting cooking oil imports from China.
The diplomatic exchange marks escalating tensions between the world’s two largest economies, despite some easing compared to earlier this year.
China’s Official Response
Foreign ministry spokesman Lin Jian stated that trade disagreements are “not in the interests of any party” when questioned about Trump’s threat. “The two sides should resolve relevant issues through consultation on the basis of equality, respect and mutual benefit,” Lin said during a press conference.
He emphasized that China’s position on economic and trade issues with the US remains “consistent and clear,” noting that Chinese leaders have clearly communicated their stance on recent policies.
Rare Earth Restrictions Justified
Lin defended China’s controls on rare earth technology exports as necessary “to better safeguard world peace and regional stability and fulfill international obligations such as non-proliferation.”
Beijing’s position comes after EU trade commissioner Maros Sefcovic deemed the restrictions unjustified. China dominates global production of these critical minerals used in automotive, electronics, and defence industries.
US Retaliation Threats
Trump issued his warning following Beijing’s suspension of US soybean purchases, which he labeled an “economically hostile act.” “We are considering terminating business with China having to do with Cooking Oil, and other elements of Trade, as retribution,” he posted on Truth Social.
Last week, China implemented restrictions on rare earth technology exports, prompting Trump to signal a potential 100 percent tariff on Chinese goods starting November 1.
Significant Trade Relationship
The trade relationship remains substantial, with the US being China’s largest buyer of used cooking oil last year. According to the US Department of Agriculture, American purchases totaled 1.27 million tonnes—representing over a 50 percent increase from 2023 and accounting for more than 40 percent of China’s exports of the product.
The cooking oil in question is used in biofuels, including biodiesel and sustainable aviation fuel.
Despite the current tensions, a long-term trade agreement between Washington and Beijing remains uncertain, leaving global markets watching closely for further developments.
