Vance urges Beijing to ‘choose the path of reason’ as US-China trade clash escalates

US Vice President JD Vance on Sunday warned China against escalating tensions in the latest round of trade hostilities, urging Beijing to “choose the path of reason” as Washington imposes sweeping new tariffs on Chinese goods. 

Speaking on Fox News, Vance said President Donald Trump’s administration “has far more cards than the People’s Republic of China” but hopes to avoid a full-blown trade war. “It’s going to be a delicate dance, and a lot of it will depend on how the Chinese respond,” Vance said. “If they respond in a highly aggressive manner, I guarantee you the president of the United States has far more leverage. If, however, they’re willing to be reasonable, then the U.S. would be reasonable, too.” 

Vance added that Trump “values his friendship and good relationship” with Chinese President Xi Jinping but admitted that Beijing’s recent moves “shocked many in Washington.” His remarks come just days after Trump announced a 100% tariff on all Chinese imports effective November 1, alongside plans to restrict exports of key software to China. 

The measures follow Beijing’s decision to tighten controls on rare earth exports — materials essential for everything from smartphones and electric vehicles to fighter jets and radar systems. In response, China’s Commerce Ministry said Sunday that while it doesn’t want a tariff war, it “is not afraid of one,” reiterating that it prefers negotiations over threats. 

China accounts for about 70% of global rare earth mining and nearly 90% of processing, giving it powerful influence over global supply chains. The new export rules require foreign firms to obtain Chinese government approval for any products containing China-sourced rare earths — even if those items are manufactured abroad. 

The escalating standoff has rattled global markets and raised concerns that a planned meeting later this month in South Korea between Trump and Xi could be derailed. The last time tensions peaked in April, both nations imposed tariffs exceeding 100% before agreeing to a temporary truce. 

In a social media post, Trump accused China of becoming “very hostile” and “holding the world captive” through its control of critical minerals. Vance, however, signaled that the administration still prefers dialogue: “What the United States has is a lot of leverage,” he said. “My hope, and the president’s hope, is that we don’t have to use it.”