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The former US president’s latest threat to introduce an extra complete levy on items imported from China has been labeled a “prime illustration” of United States’ contradictory behavior, according to the Chinese government.

A Commerce Ministry spokesperson also stated that China could implement its own undisclosed “responsive actions” if the US President carries out his warning, adding that the country was “fearless” of a looming commercial battle.

On Friday, the former president hit back at Beijing’s move to strengthen its rules for overseas sales of rare earths, accusing the Chinese leadership of “becoming very hostile” and attempting to hold the global community “captive”.

He also vowed to withdraw from a arranged talks with Beijing’s head of state Xi Jinping, which was set for a conference in South Korea later this month.

Trump’s comments on last Friday rattled global markets, with the S&P 500 share index falling by 2.7%, marking its steepest fall since earlier this year.

These statements reignited apprehensions of a trade war between the United States and China.

Earlier this year, the two sides had agreed to remove high import duties on each other’s goods, which had created the possibility of bilateral trade stopping between the economic powers.

This left, United States levies on Chinese goods facing an extra 30% levy compared with the start of the year, while items from the United States entering the Chinese market are subject to a ten percent duty.

China’s latest remarks – published by the relevant government department in the format of official answers to media inquiries – reflected language from the height of the ongoing trade dispute.

The remarks condemned US export restrictions on semiconductors and chips while supporting the country’s own overseas sale regulations on key elements as “routine measures” to protect domestic safety and that of all nations.

The official stated that for “a long time”, the US had “expanded the interpretation” of domestic safety, abused export control measures and “adopted discriminatory practices against China.

“Resorting to import duty warnings is not the correct approach to deal with Beijing,” the spokesperson said.

“The nation’s view” on a trade conflict has always been consistent: we are not seeking one, but we are unafraid of one.”

Recently, Beijing announced it was strengthening foreign shipment restrictions on key elements and further resources critical for advanced tech manufacturing.

The action was viewed as a significant step, as the nation handles about 90% of the global rare earth supply, which are employed in items such as photovoltaic modules and mobile phones.

The recent comments from both governments are being interpreted by some as a means of enhancing bargaining power in preparation for upcoming negotiations.

Is not yet known whether a meeting between the former president and China’s leader, scheduled at a summit in the Republic of Korea before month’s end, will go ahead.