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Donald Trump’s latest threat to introduce an further complete levy on products from China has been called a “classic case” of US double standards, according to the Chinese government.

A representative of the ministry also stated that China could introduce its own undisclosed “countermeasures” if the US President follows through on his pledge, adding that the country was “not afraid” of a potential trade conflict.

On Friday, the former president retaliated at Beijing’s move to strengthen its rules for overseas sales of critical elements, charging China of “adopting a confrontational stance” and attempting to hold the world “hostage”.

He also warned to withdraw from a planned summit with Chinese leader Xi, which was set for a conference in South Korea in the coming weeks.

Trump’s comments on last Friday unsettled financial markets, with the S&P 500 share index dropping 2.7%, marking its steepest fall since April.

These statements revived fears of a trade war between the two economic giants.

In May, the respective governments had consented to drop triple-digit tariffs on each other’s goods, which had created the possibility of trade halting between the two countries.

As a result, United States levies on Chinese imports facing an extra 30% levy compared with the start of the year, while items from the United States entering the country face a ten percent duty.

Beijing’s recent statements – published by the Commerce Ministry in the manner of written responses to journalist’s questions – mirrored rhetoric from the peak of the recent trade conflict.

The remarks condemned US export restrictions on chips and semi-conductors while supporting China’s own overseas sale regulations on key elements as “normal actions” to ensure state interests and that of all nations.

The official said that for “an extended period”, the America had “overstretched the concept of state security, exploited export control measures and “enforced” unfair treatments against the Chinese nation.

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

“China’s position on a trade conflict has remained unchanging: we are not seeking one, but we are fearless of one.”

Recently, Beijing declared it was strengthening foreign shipment restrictions on key elements and additional substances vital for advanced tech manufacturing.

This move was regarded as a significant step, as the state refines about ninety percent of the global rare earth supply, which are employed in products such as photovoltaic modules and smartphones.

New remarks from the US and China are being viewed by observers as a strategy of enhancing bargaining power prior to upcoming negotiations.

Is not yet known whether a summit between Trump and President Xi, expected at a summit in Seoul in the coming weeks, will still proceed.