China rejects Trump's accusations and pledges to respond to American actions.

China today, Monday, June 2, described President Donald Trump's accusations of violating the bilateral trade agreement reached in Geneva as "baseless," affirming its determination to take strong measures to protect its interests.

This came in response to Trump's statements on Friday, accusing Beijing of not adhering to the agreement requiring mutual tariff reductions.

The Chinese Ministry of Commerce stated in an official statement that the country "implemented the agreement signed last month and strictly adhered to it," while accusing the United States of "imposing discriminatory and restrictive measures" against Chinese interests.

The ministry mentioned that these measures included tightening controls on the export of AI-related chips, suspending sales of chip design software to Chinese companies, as well as canceling visas for Chinese students in sensitive fields.

The ministry warned that "the U.S. administration is acting unilaterally, increasing economic and trade tensions and exacerbating instability between the two countries," without disclosing the nature of the actions Beijing might take in response.

It is worth noting that the two parties had reached an agreement in May to suspend tariffs for 90 days, in exchange for China lifting restrictions on exports of rare earth metals used in chip, electronics, and defense industries.

In a new development, Trump announced on Friday an increase in tariffs on Chinese steel and aluminum imports to 50%. Despite China being the world's largest steel producer, its market share in the U.S. significantly declined after a 25% tariff was imposed in 2018, while it still ranks third among aluminum suppliers to the United States.