'Trade conflicts have no winners': China hits back at US; defends rare earths restrictions

China hit back at the US on Wednesday, warning that trade conflicts create "no winners" after President Donald Trump raised the possibility of halting cooking oil imports from China.When asked about Trump’s threat, China’s foreign ministry said trade disagreements were “not in the interests of any party.” The product in question is used in biofuels, including biodiesel and sustainable aviation fuel.“The two sides should resolve relevant issues through consultation on the basis of equality, respect and mutual benefit,” spokesman Lin Jian said during a press conference. “China's position on China-US economic and trade issues is consistent and clear,” he added, noting that Chinese leaders had “made clear their position” on recent policies.

Lin also justified the controls as necessary “to better safeguard world peace and regional stability and fulfill international obligations such as non-proliferation.

” Trump issued his warning following Beijing’s suspension of US soybean purchases, which he labelled an “economically hostile act.” “We are considering terminating business with China having to do with Cooking Oil, and other elements of Trade, as retribution,” he said via Truth Social.

Despite easing tensions compared with earlier this year, a long-term agreement between Washington and Beijing remains uncertain. Last week, China implemented restrictions on rare earth technology exports and other items, prompting Trump to signal a potential 100 percent tariff on Chinese goods starting November 1. Last year, the US was China’s largest buyer of used cooking oil, purchasing 1.27 million tonnes—over a 50 percent increase from 2023—accounting for more than 40 percent of China’s exports of the product, according to the US Department of Agriculture. Beijing defended its rare earth export limits as necessary for global security after EU trade commissioner Maros Sefcovic deemed them unjustified. China dominates global production of these minerals, which are critical for manufacturing magnets used in automotive, electronics, and defence industries.