China on Monday refuted Washington's claims that it had broken the Geneva trade agreement, instead accusing the U.S. for breaching deal terms, signaling talks between the worlds top two economies have taken a turn for the worse.

Trade frictions between Washington and Beijing have flared up after a hiatus following a meeting between U.S. Treasury Secretary Scott Bessent and his Chinese counterpart He Lifeng in Geneva, Switzerland, that had led them to suspend most tariffs for 90 days.

The Trump administration has ratcheted up export restrictions on semiconductor design software and chemicals to China, while announcing it would revoke visas for Chinese students, drawing ire from Beijing.

Those steps "seriously undermine" the deal reached in Geneva, a Chinese commerce department spokesperson said, while vowing that Beijing would take measures to safeguard its rights and benefits, if the U.S. presses ahead with actions that "damage China's interests."

China has kept a firm grip on its rare earths exports, contrary to Washington's expectations. Chinese state media in an article Monday touted coordinated efforts across the nation on scrutinizing and curbing illicit mining and exports of critical minerals.

Beijing is "comfortable taking an extremely firm stance in these negotiations" and "sees no reason to roll over," said Stephen Olson, visiting senior fellow at Yusof Ishak Institute in Singapore.

"It is well understood in Beijing that any deal reached with the U.S. will only buy some short-term peace, not the end of the story," Olson added.

The U.S. has continued to "unilaterally provoke new economic and trade frictions, increasing the uncertainty and instability in the bilateral economic and trade relations," the Chinese spokesperson said.

Last Friday, President Donald Trump accused China of violating its preliminary trade agreement with the U.S. In a social media post, Trump wrote, "China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!"

Source: CNBC