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The former US president’s newest threat to impose an further 100% tariff on products from China has been described as a “prime illustration” of United States’ contradictory behavior, as stated by the China’s leadership.

A official from China’s Commerce Ministry also stated that China could implement its own unspecified “responsive actions” if the American leader executes his pledge, noting that the country was “not afraid” of a potential commercial battle.

On Friday, Donald Trump responded at China’s decision to reinforce its regulations for foreign shipments of rare earth minerals, alleging Beijing of “adopting a confrontational stance” and attempting to hold the world “hostage”.

He also warned to withdraw from a planned meeting with Chinese leader Xi, which was arranged for a meeting in South Korea in the coming weeks.

Trump’s comments on Friday shook financial markets, with the benchmark US stock index dropping over two and a half percent, marking its steepest fall since April.

These statements renewed concerns of a trade conflict between the United States and China.

Earlier this year, the two sides had consented to remove significant levies on each other’s goods, which had created the possibility of trade halting between the two nations.

This left, United States levies on Chinese goods subject to an extra import tax compared with the start of the year, while US goods entering China incur a ten percent duty.

China’s latest remarks – released by the relevant government department in the manner of official answers to journalist’s questions – reflected language from the peak of the recent trade conflict.

Officials denounced United States controls on chips and semi-conductors while supporting China’s own restrictions on exports on rare earth minerals as “routine measures” to protect national security and that of every country.

Their representative remarked that for “a long time”, the America had “broadened the definition” of state security, misused overseas sale restrictions and “adopted unfair treatments against China.

“Resorting to import duty warnings is not the correct approach to deal with China,” the official stated.

“China’s position on a trade conflict has always been unchanging: we are not seeking one, but we are not afraid of one.”

Recently, the Chinese government revealed it was tightening overseas sale regulations on key elements and other materials vital for high-technology production.

The action was viewed as a important measure, as the country handles about 90% of the world’s rare earths, which are used in products such as renewable energy components and mobile phones.

New remarks from Washington and Beijing are being viewed by analysts as a means of enhancing bargaining power ahead of future trade talks.

Is not yet known whether a meeting between Donald Trump and China’s leader, planned at a high-level meeting in South Korea before month’s end, will go ahead.