U.S.-China tensions, trade restrictions rise before meeting

China remains open to a trade deal with the United States, but won’t accept tight restrictions, the Chinese government said Tuesday. U.S. President Donald Trump and Chinese leader Xi Jinping plan to meet in person at an economic summit in late October, but tensions between the two countries have risen considerably over the past week. Each imposed new trade restrictions on the other.

What are some of the major changes? New U.S. port fees for Chinese vessels came into effect on Tuesday. One fee starting at $50 per ton carried on a Chinese vessel is scheduled to increase over the next three years. China imposed higher port fees for U.S.-linked vessels in response, saying the United States’ change severely harmed Chinese interests.

China produces most of the world’s rare earth materials. Last week, it added five more materials to a list of restricted exports, Reuters reported. It also announced new rules requiring foreign companies to have a Chinese export license. The move was meant to safeguard national security after the United States threatened to impose 100% tariffs, the Chinese government said on Tuesday.

Trump on Friday also threatened to impose a 100% tariff on China and restrict exports of critical software if further Chinese export controls go into effect on Nov. 1. But on Sunday he said the situation would turn out fine, as Xi didn’t want to send his country into a depression. The United States wanted to help China, he said.

Dig deeper: Read my report on the Chinese government’s arrest of a pastor and dozens of underground church members.