US and China Trade Tensions Escalate as Washington Plans Vehicle Ban

China has warned the United States not to take “discriminatory actions” against its firms, following reports that Washington is planning to ban the sale of vehicles using Chinese and Russian technology. The move marks the latest escalation in the simmering trade row between the two nations.

According to Bloomberg and other media, the US is mulling new rules that would ban hardware and software made in China from its vehicles. China’s foreign ministry spokesman, Lin Jian, urged the US to respect market principles and provide an open, fair, transparent, and non-discriminatory business environment for Chinese enterprises.

China has repeatedly opposed the US’s broadening of the concept of national security and the discriminatory actions taken against Chinese companies and products. The country has vowed to safeguard its legitimate rights and interests and will not hesitate to take necessary measures to defend them.

The proposed rules are the latest development in the ongoing trade tensions between the US and China. In May, Washington unveiled steep tariff hikes on Chinese imports, including electric vehicles and semiconductors, which hit $18 billion worth of Chinese goods. The tariff rate on electric vehicles is set to quadruple to 100 percent this year, while the tariff for semiconductors will surge from 25 percent to 50 percent by next year.

The tariff hikes were implemented after a review of levies imposed under the Trump administration, which affected some $300 billion in goods from China. The move is seen as an effort by the US to counter China’s growing influence in the global economy.

The trade tensions come ahead of the US presidential election in November, where both Democrats and Republicans are seeking to show a tough stance on China. The US Trade Representative’s office has confirmed that a 50 percent duty on semiconductors will start in 2025.

US President Joe Biden has accused Beijing of “cheating” rather than competing on trade. The accusation has been met with anger from China, which has denied any wrongdoing.