New US rules to exacerbate trade dispute with China

China has issued a warning to the United States, urging it not to take “discriminatory actions” against Chinese firms, following reports that Washington is considering a ban on vehicles using Chinese and Russian technology.

Media outlets like Bloomberg reported that the U.S. is contemplating new regulations that would prohibit the use of Chinese-made hardware and software in vehicles.

Chinese Foreign Ministry spokesperson Lin Jian responded by calling on the U.S. to adhere to market principles and maintain an “open, fair, transparent, and non-discriminatory business environment.”

Lin emphasized China’s opposition to the broad application of national security concerns to justify actions against Chinese companies and vowed that China would safeguard its interests.

This potential move would mark an escalation in the ongoing U.S.-China trade tensions.

In May, the U.S. imposed significant tariff increases on Chinese imports, particularly in strategic sectors like electric vehicles (EVs), semiconductors, and critical minerals.

Tariffs on Chinese EVs are set to rise to 100%, and semiconductor tariffs will reach 50% by 2025.

President Joe Biden has been vocal in his criticism of China’s trade practices, accusing Beijing of “cheating” rather than competing fairly.

Both U.S. political parties have been seeking to demonstrate toughness on China ahead of the 2024 presidential election.