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The former US president’s newest warning to impose an additional complete levy on Chinese goods has been described as a “prime illustration” of US double standards, according to the China’s leadership.

A official from China’s Commerce Ministry also stated that China could enact its own undisclosed “retaliatory steps” if the American leader executes his threat, adding that the country was “not afraid” of a looming commercial battle.

On Friday, the former president retaliated at Beijing’s move to tighten its rules for foreign shipments of rare earth minerals, accusing China of “becoming very hostile” and attempting to hold the global community “hostage”.

Furthermore, he threatened to withdraw from a planned summit with Chinese leader President Xi, which was arranged for a conference in Seoul before the month ends.

The former president’s remarks on that day shook global markets, with the S&P 500 falling by over two and a half percent, marking its largest decline since last spring.

These statements renewed fears of a commercial dispute between the US and China.

Earlier this year, the respective governments had agreed to drop triple-digit tariffs on each other’s products, which had created the possibility of trade halting between the two countries.

Consequently, United States levies on products from China subject to an additional import tax compared with the year’s onset, while items from the United States entering China are subject to a import levy.

China’s latest remarks – published by the Ministry of Commerce in the format of written responses to journalist’s questions – echoed rhetoric from the height of the recent trade conflict.

Officials denounced American limits on exports on chips and semi-conductors while supporting China’s own overseas sale regulations on key elements as “normal actions” to protect national security and that of all nations.

Their representative stated that for “many years”, the US had “broadened the definition” of national security, misused foreign shipment regulations and “implemented” biased policies against Beijing.

“Resorting to trade levy ultimatums is not the correct approach to engage with the Chinese government,” the official said.

“Beijing’s stance” on a import duty dispute has remained unchanging: we wish to avoid one, but we are fearless of one.”

Last week, Beijing declared it was strengthening export controls on rare earth minerals and additional substances critical for high-technology production.

This was seen as a significant step, as the country refines about ninety percent of the global rare earth supply, which are used in items such as renewable energy components and handheld devices.

The recent comments from the US and China are being seen by analysts as a method of strengthening positions prior to future trade talks.

Remains uncertain whether a summit between Trump and China’s leader, expected at a conference in Seoul later this month, will take place as planned.