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Donald Trump’s most recent ultimatum to impose an extra complete levy on products from China has been described as a “prime illustration” of American hypocrisy, as stated by the Beijing administration.

A official from China’s Commerce Ministry also stated that the nation could introduce its own undisclosed “responsive actions” if the American leader carries out his warning, adding that the country was “not afraid” of a potential commercial battle.

Last Friday, the former president retaliated at Beijing’s move to strengthen its regulations for overseas sales of rare earths, alleging Beijing of “turning aggressive” and attempting to hold the global community “hostage”.

Furthermore, he threatened to cancel a planned meeting with Chinese leader Xi Jinping, which was set for a conference in the Republic of Korea later this month.

The former president’s remarks on Friday shook stock exchanges, with the S&P 500 closing down 2.7%, marking its largest decline since last spring.

These statements revived fears of a commercial dispute between the two economic giants.

This past spring, the both nations had consented to remove triple-digit tariffs on each other’s imports, which had created the possibility of trade halting between the two countries.

Consequently, US tariffs on products from China incurring an added 30% levy compared with the start of the year, while US goods entering the country are subject to a import levy.

Beijing’s recent statements – released by the relevant government department in the format of formal replies to media inquiries – mirrored rhetoric from the height of the latest commercial tensions.

They criticised American limits on exports on chips and semi-conductors while defending China’s own overseas sale regulations on rare earth minerals as “standard procedures” to protect national security and that of all nations.

Their representative stated that for “a long time”, the US had “overstretched the concept of state security, misused overseas sale restrictions and “enforced” discriminatory practices against the Chinese nation.

“Using” trade levy ultimatums is not the correct approach to engage with the Chinese government,” the spokesperson said.

“China’s position on a trade conflict has consistently been steady: we do not want one, but we are unafraid of one.”

The previous week, China revealed it was strengthening export controls on key elements and other materials vital for advanced tech manufacturing.

The action was viewed as a important measure, as the country processes about the vast majority of the planet’s critical minerals, which are employed in products such as photovoltaic modules and smartphones.

The recent comments from both governments are being interpreted by observers as a means of enhancing bargaining power in preparation for future trade talks.

Remains uncertain whether a meeting between Donald Trump and President Xi, planned at a summit in Seoul in the coming weeks, will go ahead.