The price of the leading cryptocurrency dropped below $108,000 on Thursday afternoon, as tensions between the world’s two largest economies intensified.
Bitcoin Crashes, Stocks Bleed, China Points the Finger at the U.S.
A day after U.S. Treasury Secretary Scott Bessent warned that Beijing’s expanded rare earth export controls were “between China and the world,” Chinese Ministry of Commerce spokesperson He Yongqian fired back, accusing the U.S. of “creating unnecessary misunderstandings and spreading panic.” Bitcoin fell below $108,000, and stocks turned red following the escalation of these remarks.
China already controls about 90% of global rare earth production, but last week the country took its export restrictions even further. U.S. President Donald Trump reacted angrily, threatening to retaliate with 100% tariffs on Chinese imports. In response, Beijing announced sanctions on five U.S. subsidiaries of Hanwha Ocean, a South Korean shipbuilder with ties to the U.S. government.
However, are the Americans resorting to their own tricks? China thinks so. Washington recently invoked Section 301 of the U.S. Trade Act, which allows the government to retaliate against unfair trade practices. The U.S. tripled service fees for Chinese maritime vessels, from $14 to $46 per ton, and proposed tariffs of up to 150% on various shipping-related products imported from China. Beijing retaliated by imposing a comparable $56-per-ton fee on American ships.
And now, following Bessent’s sharp criticism of China’s tactics — even calling one trade representative “a bit unbalanced” — Beijing is firing back, accusing Washington of fueling market panic and confusion among Americans.
