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Donald Trump’s latest warning to introduce an extra complete levy on Chinese goods has been labeled a “classic case” of United States’ contradictory behavior, according to the China’s leadership.

A official from China’s Commerce Ministry further commented that Beijing could implement its own unrevealed “responsive actions” if the White House occupant follows through on his warning, adding that the country was “not afraid” of a potential commercial battle.

On Friday, Trump responded at China’s decision to strengthen its regulations for overseas sales of rare earth minerals, charging Beijing of “becoming very hostile” and attempting to hold the world “hostage”.

Furthermore, he vowed to cancel a scheduled summit with Beijing’s head of state President Xi, which was expected to take place during a conference in South Korea in the coming weeks.

Trump’s comments on Friday rattled financial markets, with the S&P 500 falling by over two and a half percent, marking its biggest drop since last spring.

His comments reignited apprehensions of a trade conflict between the United States and China.

Earlier this year, the two sides had agreed to remove triple-digit tariffs on each other’s imports, which had created the possibility of bilateral trade stopping between the two countries.

This left, American import duties on Chinese imports incurring an added import tax compared with the start of the year, while US goods entering China incur a import levy.

The most recent comments from China – released by the Commerce Ministry in the format of official answers to press queries – echoed terminology from the height of the recent trade conflict.

They criticised United States controls on electronic components while supporting the country’s own restrictions on exports on key elements as “routine measures” to protect domestic safety and that of all nations.

The spokesperson said that for “many years”, the United States had “expanded the interpretation” of state security, misused foreign shipment regulations and “implemented” discriminatory practices against China.

“Turning to” import duty warnings is not the correct approach to engage with the Chinese government,” the official said.

“China’s position on a tariff war has consistently been unchanging: we are not seeking one, but we are unafraid of one.”

The previous week, the Chinese government announced it was reinforcing overseas sale regulations on key elements and further resources critical for high-technology production.

This move was regarded as a key move, as the state handles about the vast majority of the world’s rare earths, which are used in goods such as photovoltaic modules and handheld devices.

The recent comments from Washington and Beijing are being interpreted by analysts as a method of enhancing bargaining power ahead of forthcoming discussions.

Is not yet known whether a summit between Trump and China’s leader, scheduled at a high-level meeting in Seoul later this month, will take place as planned.