Just a day after U.S. Treasury Secretary Scott Bessent declared “This is China versus the world,” in response to Beijing’s expansion of its rare earths export controls, Chinese Ministry of Commerce spokesperson He Yongqian clapped back and accused the U.S. of “deliberately creating unnecessary misunderstanding and panic.” Bitcoin fell below $108K and stocks slid into the red as news of the allegations spread.

(Chinese Ministry of Commerce spokesperson He Yongqian says the U.S. is “deliberately creating unnecessary misunderstanding and panic.”/ Global Times)

China already controls 90% of rare earth production, but in a bid to further exert its dominance, the country expanded export controls on rare earths last week. U.S. President Donald Trump was outraged and threatened to slap China with 100% tariffs. Beijing then moved to sanction five U.S. subsidiaries of Hanwha Ocean, a South Korean shipbuilder linked to the U.S. government.

But are the Americans also engaging in their own form of chicanery? China thinks so. The U.S. recently invoked Section 301 of the U.S. Trade Act, which permits the government to retaliate against unfair trade practices. Washington tripled service fees on Chinese maritime vessels from $14 per net ton to $46 and proposed tariffs of up to 150% on several maritime items arriving at U.S. ports from China. Beijing countered with a comparable $56 per net ton fee on American ships.

And now, after Bessent delivered scathing remarks on China’s tactics yesterday, even going as far as calling one of its trade representatives “slightly unhinged,” Beijing is speaking out and pointing the finger at Washington, accusing the Americans of spreading panic and turmoil in the markets.

“The U.S. interpretation seriously distorts and exaggerates China’s measures, deliberately creating unnecessary misunderstanding and panic,” He Yongqian said during a press conference in Beijing. “The accusations from the U.S. reveal that the U.S. is projecting its own behavior onto others.”

Bitcoin was down 2.98% at the time of writing, trading at $108,021.73 after sinking as low as $107,642.18 earlier in the day, according to data from Coinmarketcap. The cryptocurrency’s highest price in the last 24 hours topped $111,990.81, but weekly performance was down 10.73%.

( BTC price / Trading View)

Twenty-four-hour trading volume rose to $83.64 billion, up 12% since Wednesday. Market capitalization, much like price, eased 3.08% for the day and stood at $2.15 trillion at the time of reporting. Bitcoin dominance was also down, shedding 0.19% to reach 59.38%.

( BTC dominance / Trading View)

Total futures open interest inched up 0.50% to $73.06 billion according to Coinglass data, and liquidations for the day jumped to $227.93 million. Long investors once again took the biggest hit and were wiped out to the tune of $172.27 million. Shorts came in at a significantly lower but not trivial $55.67 million.

• Why did Bitcoin drop below $108K?
  Bitcoin sank as China accused the U.S. of spreading “misunderstanding and panic” amid deepening trade tensions.
• What caused the latest U.S.-China clash?
  Beijing expanded rare-earth export controls, prompting new U.S. tariffs and sharp remarks from Treasury Secretary Scott Bessent.
• How did markets react?
  Crypto and stocks both fell, with Bitcoin down nearly 3% and liquidations topping $225 million.
• What did China’s spokesperson say?
  He Yongqian claimed Washington distorted China’s actions and deliberately fueled fear in global markets.

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