CHINA signalled today that it would not back down in the face of a 100 per cent tariff threat from President Donald Trump, urging the United States to resolve differences through negotiations instead of threats.

“China’s stance is consistent,” the Commerce Ministry said in a statement posted online. “We do not want a tariff war but we are not afraid of one.”

The response came two days after President Trump threatened to jack up the tax on imports from China by November 1 in response to new Chinese restrictions on the export of rare earths, a key component of many consumer and military products.

The dispute threatens to derail a possible meeting between Mr Trump and Chinese President Xi Jinping and end a truce in a tariff war in which new tariffs from both sides briefly topped 100 per cent in April.

China has been one of the few countries that has refused to back down from the swathe of trade tariffs imposed by the US earlier this year.

“Frequently resorting to the threat of high tariffs is not the correct way to get along with China,” the Commerce Ministry said in its online post.

The statement called for dialogue but said: “If the US side obstinately insists on its practice, China will be sure to resolutely take corresponding measures to safeguard its legitimate rights and interests.”

President Trump accused China of “becoming very hostile” and of holding the world captive by restricting access to rare earth metals.

China’s new regulations require foreign companies to get special approval to export items that contain rare earths elements sourced from China.

These critical minerals are needed in a broad range of products, from jet engines, radar systems and electric vehicles to consumer electronics including laptops and phones.

China accounts for nearly 70 per cent of the world’s rare earths mining and controls roughly 90 per cent of global rare earths processing.