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Donald Trump’s most recent ultimatum to enforce an extra full import duty on products from China has been called a “classic case” of American hypocrisy, per the Beijing administration.

A official from China’s Commerce Ministry further commented that China could implement its own unspecified “retaliatory steps” if the American leader follows through on his pledge, adding that the country was “unafraid” of a possible trade conflict.

This past Friday, Donald Trump retaliated at Beijing’s move to tighten its regulations for foreign shipments of critical elements, accusing Beijing of “turning aggressive” and attempting to hold the global community “under its control”.

He also threatened to pull out of a scheduled summit with Beijing’s head of state Xi, which was expected to take place during a meeting in South Korea before the month ends.

Trump’s comments on Friday rattled stock exchanges, with the S&P 500 share index closing down nearly three percent, marking its biggest drop since last spring.

The president’s words revived fears of a trade war between the US and China.

In May, the both nations had agreed to drop significant levies on each other’s goods, which had led to concerns of bilateral trade stopping between the two nations.

This left, US tariffs on products from China facing an added 30% levy compared with the start of the year, while US goods entering China incur a import levy.

The most recent comments from China – released by the relevant government department in the format of formal replies to media inquiries – echoed rhetoric from the peak of the recent trade conflict.

They criticised United States controls on semiconductors and chips while supporting China’s own overseas sale regulations on rare earths as “standard procedures” to protect national security and that of every country.

The spokesperson remarked that for “an extended period”, the United States had “expanded the interpretation” of state security, exploited export control measures and “adopted unfair treatments against the Chinese nation.

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

“China’s position on a trade conflict has consistently been consistent: we are not seeking one, but we are unafraid of one.”

The previous week, China revealed it was strengthening overseas sale regulations on key elements and additional substances essential to high-technology production.

This was seen as a important measure, as the country refines about 90% of the global rare earth supply, which are utilized in goods such as solar panels and smartphones.

New remarks from Washington and Beijing are being seen by observers as a strategy of enhancing bargaining power in preparation for forthcoming discussions.

It is unclear whether a meeting between Trump and China’s leader, planned at a summit in Seoul in the coming weeks, will still proceed.