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The former US president’s most recent ultimatum to impose an additional full import duty on Chinese goods has been described as a “prime illustration” of United States’ contradictory behavior, according to the Chinese government.

A official from China’s Commerce Ministry further commented that the nation could enact its own unspecified “retaliatory steps” if the American leader executes his warning, noting that the country was “not afraid” of a potential trade conflict.

Last Friday, Trump hit back at the Chinese government’s action to reinforce its policies for foreign shipments of rare earth minerals, charging the Chinese leadership of “turning aggressive” and attempting to hold the global community “hostage”.

He also threatened to pull out of a arranged summit with Chinese leader Xi Jinping, which was set for a summit in the Republic of Korea before the month ends.

His statements on Friday unsettled stock exchanges, with the S&P 500 falling by over two and a half percent, marking its steepest fall since earlier this year.

These statements renewed concerns of a commercial dispute between the two economic giants.

In May, the both nations had agreed to drop triple-digit tariffs on each other’s products, which had raised the prospect of bilateral trade stopping between the two countries.

This left, American import duties on Chinese imports facing an extra 30% levy compared with the year’s onset, while items from the United States entering China incur a import levy.

China’s latest remarks – issued by the Commerce Ministry in the form of formal replies to journalist’s questions – mirrored terminology from the height of the ongoing trade dispute.

The remarks condemned United States controls on semiconductors and chips while defending China’s own overseas sale regulations on key elements as “routine measures” to protect national security and that of the global community.

The official stated that for “many years”, the United States had “broadened the definition” of domestic safety, misused foreign shipment regulations and “enforced” discriminatory practices against Beijing.

“Using” tariff threats is not the right way to engage with Beijing,” their representative said.

“The nation’s view” on a trade conflict has consistently been unchanging: we are not seeking one, but we are unafraid of one.”

Recently, China announced it was tightening foreign shipment restrictions on rare earth minerals and other materials critical for high-technology production.

This was seen as a important measure, as the nation handles about 90% of the planet’s critical minerals, which are employed in goods such as photovoltaic modules and mobile phones.

The recent comments from the US and China are being viewed by observers as a means of strengthening positions in preparation for future trade talks.

Is not yet known whether a talks between the former president and China’s leader, expected at a high-level meeting in Seoul in the coming weeks, will take place as planned.