BEIJING: China accused the United States of "naked economic terrorism" on Thursday (May 30) as Beijing ramps up the rhetoric in their trade war.
The world's top two economies are at loggerheads as trade talks have apparently stalled, with President Donald Trump hiking tariffs on Chinese goods earlier this month and blacklisting telecom giant Huawei.
"We are against the trade war, but we are not afraid of it," vice foreign minister Zhang Hanhui said at a press briefing to preview President Xi Jinping's trip to Russia next week.
"This premeditated instigation of a trade conflict is naked economic terrorism, economic chauvinism, and economic bullying," Zhang said.
"There is no winner in a trade war," he warned.
China has hit back with its own tariff increase while state media has suggested that Beijing could stop exports of rare earths to the United States, depriving Washington of a key material to make tech products.
Meanwhile, state media and officials have stepped up the rhetoric as the Communist Party digs in for what could be a long fight with the United States.
An anchor for the English-language state broadcaster China Global Television Network (CGTN) even held a rare debate on Thursday with a presenter from Fox Business Network to discuss the trade war after jousting on social media.
The debate between CGTN's Liu Xin and Fox Business's Trish Regan was civil, with the American journalist saying "I appreciate you being here" and the Chinese anchor inviting her to come to China, adding "I'll take you around".
But China's propaganda apparatus has hardened the tone.
The party's mouthpiece, The People's Daily, warned in an editorial on Wednesday that rare earths could be used as a counter-measure, adding that the US shouldn't "say we didn't warn you".
China produces more than 95 per cent of the world's rare earths, and the United States relies on the Asian superpower for upwards of 80 per cent of its imports.
"It is unacceptable for any country to use rare earth products exported by China to curb and suppress China's development," commerce ministry spokesman Gao Feng said Thursday.
US Secretary of State Mike Pompeo, asked about the rare earths threat during an interview, said that Americans have already "lost and suffered for decades under the current rules" and that Trump's "singular focus is to push back" on China.
He renewed his attack on Huawei, saying there was a "deep connectivity" between the company and the Chinese state.
"If it's the case that the Chinese Communist Party wanted to get information from technology that was in the possession of Huawei, it is almost certainly the case that Huawei would provide that to them," he told the Fox Business Network.
Huawei has rejected the accusations and on Tuesday filed a motion for summary judgment in a US court, hoping it would swiftly win a lawsuit against US legislation that bars federal agencies from using the company's equipment.
"You have seen that for some time, the US government has tried very hard to fabricate various topics, misleading the public in the US or in other countries of the international community, in order to suppress Huawei," Chinese foreign ministry spokesman Lu Kang told reporters.
RUSSIA, CHINA GET CLOSER
While Washington and Beijing spar, Xi is preparing to meet with President Vladimir Putin from Jun 5 to Jun 7 as the neighbouring giants forge closer ties.
"This trade conflict will also have a serious negative impact on the development and revival of the global economy," Zhang said.
China and Russia have broad consensus and common interests on the trade war issue, and the two countries will "certainly" strengthen their economic cooperation, Zhang said.
"We will certainly respond to various external challenges, do what we have to do, develop our economies, and constantly improve the living standards of our two peoples," he said.