China says it is “not afraid” of a trade war in response to the US threat to impose 100% tariffs

China has responded to President Donald Trump’s threats to impose 100% tariffs on Chinese goods and a ban on critical software due to expanded export controls on infrequent earth metals. According to NewsweekChina is ready to face Washington’s ultimatum, calling on it to resolve the issue at the negotiating table rather than making statements on social media.

“If the United States continues to act unilaterally, China will resolutely take appropriate measures to protect its legitimate rights and interests,” the Ministry of Commerce of the People’s Republic of China said in a statement. “Our position on the tariff war remains unchanged – we do not want it, but we are not afraid of it.”

The current trade war with China began in April this year, when Trump imposed tariffs on all U.S. trading partners, including 54% of the total tariffs on Chinese goods. It has responded with its own pushback tariffs and export restrictions on certain infrequent earth metals that threaten chipmakers’ global supply chains. The situation has seemingly calmed down in recent months as the two sides negotiate trade issues, but China’s recent expansion of infrequent earth controls threatens advanced semiconductors up to 14nm, which were first introduced to the market in 2014.

China is a leading supplier of infrequent earth minerals. This country provides 70% of the raw materials needed for their production and 90% of the processing capacity worldwide. Because of this, it could potentially choke chipmakers’ global supply chain, especially since many chip companies are based in the U.S. or in countries with close ties to it.

Interestingly, China used the same language that the United States used to block exports to the country under infrequent earth export controls, claiming that the restrictions were intended to “protect national security” and prevent their operate by foreign militaries. However, it is also clear that it is using it as a bargaining chip, as Beijing already demonstrated in July 2025, when it eased some restrictions in exchange for Washington lifting the ban on EDA software exports.

Trump said on his social media platform that he would take the tariffs into effect on November 1, which means the United States and China still have some time to talk. China has likely expanded its infrequent earth export controls to extract something from the U.S. through negotiations, but we’ll only know if it lifts or reduces restrictions after obtaining concessions from the White House.

Follow Tom’s Hardware on Google NewsOr add us as your preferred sourceto get the latest news, analysis and reviews on your feeds.