China tells US provoking trade disputes is 'naked economic terrorism'

Senior official says China is 'not afraid' of a trade war as Beijing signals potential restrictions on rare-earth exports

Provoking trade disputes is "naked economic terrorism", a senior Chinese diplomat said on Thursday, ramping up the rhetoric against the US amid a bitter trade war that shows no signs of ending soon.

Zhang Hanhui, China's vice foreign minister told reporters in Beijing China opposed the use of "big sticks" such as trade sanctions, tariffs and protectionism.

The roots of the dispute come from US president Donald Trump's "America first" project to protect the US' position as the world's leading economy, while encouraging businesses to hire more workers in the US and to manufacture their products there.

Related: Global markets fall as China prepares to hit back at US in trade war

US President Donald Trump Trump has often repeated that China pays for US tariffs on its goods. 'We have billions of dollars coming into our treasury from China. We never had 10 cents coming into our treasury; now we have billions coming in' he said on 24 January 2019. On 5 May he tweeted: 'For 10 months, China has been paying Tariffs to the USA.'