China accuses US of ‘naked economic terrorism’

China accused the United States of “naked economic terrorism” on Thursday 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 US 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, stressing that China opposes the systematic use of sanctions, tariffs and protectionism.

“There is no winner in a trade war,” he warned.

China has hit back with its own tariff increase that will take effect June 1, while state media has suggested that Beijing could stop exports of rare earths to the United States, depriving Washington of a key resource used to make hi-tech products.