Chinese President Xi Jinping ramped up his rhetoric yet again on the trade war.
“We are here at the starting point of the Long March to remember the time when the Red Army began its journey,” Xi said at a rally in Jiangxi province during a domestic tour. “We are now embarking on a new Long March, and we must start all over again!” according to a report from the South China Morning Post.
Although he didn’t mention the U.S. or the ongoing trade war, the remarks are interpreted as a clear sign that China is not going to cave in anytime soon. Chinese Vice premier Liu He, a top trade negotiator, was with Xi during his tour, according to the report. The “Long March” refers to China’s civil war in the 1930s.
Xi also visited rare earth mining and processing facilities on Monday, the report said. There has been speculation that China could ban rare earth exports to the U.S. if the trade war escalates, according to the South China Morning Post.
The trade negotiations between the world’s two largest countries have hit a roadblock. President Donald Trump followed through with his threat to increase tariffs on $200 billion in Chinese goods from 10% to 25%. China immediately responded by upping the tariffs on $60 billion of U.S. goods to as high as 25%.
Beijing is in “no rush” to resume trade talks between the U.S. and China, the newspaper reported Monday. Chinese analysts said China is prepared to suspend meeting if Trump wasn’t “prepared to be realistic,” South China Morning Post said in a Monday report.
The talks between the U.S. and China appeared to have stalled as it is unclear what the two sides would negotiate, sources told CNBC’s Kayla Tausche on Friday. China has invited the U.S. delegation to Beijing, and last week, Treasury Secretary Steven Mnuchin appeared open to accepting the offer.
Trump said recently he has not “made that decision yet” on whether to put tariffs on another $325 billion in Chinese goods. The two leaders are set to meet at the G-20 summit in Japan next month.