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Donald Trump’s newest threat to impose an extra complete levy on products from China has been called a “prime illustration” of United States’ contradictory behavior, per the Beijing administration.

A Commerce Ministry spokesperson also stated that China could enact its own unspecified “retaliatory steps” if the American leader follows through on his pledge, adding that the country was “unafraid” of a possible commercial battle.

On Friday, Donald Trump retaliated at Beijing’s move to tighten its rules for exports of rare earths, charging Beijing of “becoming very hostile” and attempting to hold the global community “captive”.

He also threatened to pull out of a planned talks with China’s President Xi Jinping, which was set for a conference in the Republic of Korea before the month ends.

The former president’s remarks on Friday rattled global markets, with the S&P 500 share index dropping nearly three percent, marking its steepest fall since last spring.

These statements revived concerns of a commercial dispute between the United States and China.

Earlier this year, the both nations had agreed to eliminate significant levies on each other’s imports, which had raised the prospect of trade halting between the two nations.

Consequently, United States levies on Chinese goods subject to an added import tax compared with the start of the year, while US goods entering the Chinese market incur a 10% tariff.

The most recent comments from China – issued by the Commerce Ministry in the form of official answers to media inquiries – mirrored rhetoric from the height of the latest commercial tensions.

The remarks condemned American limits on exports on semiconductors and chips while supporting the country’s own overseas sale regulations on rare earths as “normal actions” to ensure national security and that of every country.

Their representative stated that for “many years”, the United States had “broadened the definition” of national security, abused overseas sale restrictions and “implemented” discriminatory practices against the Chinese nation.

“Turning to” trade levy ultimatums is not the proper method to interact with China,” the official said.

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

Last week, the Chinese government revealed it was reinforcing overseas sale regulations on rare earth minerals and other materials essential to advanced tech manufacturing.

This was seen as a significant step, as the state refines about ninety percent of the global rare earth supply, which are utilized in products such as photovoltaic modules and handheld devices.

Latest statements from the US and China are being viewed by analysts as a means of strengthening positions prior to future trade talks.

Is not yet known whether a talks between the former president and Xi Jinping, planned at a high-level meeting in South Korea in the coming weeks, will still proceed.