China accuses U.S. of deliberately causing panic over rare earth controls, says it is open to talks

China on Thursday accused the U.S. of creating “panic” over Beijing’s controls on rare earth minerals, but indicated it is open to trade talks to resolve a dispute that has threatened to reignite a trade war between the world’s two largest economies.

“The US interpretation seriously distorts and exaggerates China’s measures, deliberately creating unnecessary misunderstanding and panic,” Ministry of Commerce spokesperson He Yongqian told a press conference, according to the state newspaper Global Times.

Beijing last week announced sweeping controls on rare earth exports ahead of an expected meeting between President Donald Trump and President Xi Jinping in South Korea. Trump has threatened to impose 100% tariffs on China starting Nov. 1 or sooner in retaliation.

U.S. Trade Representative Jamieson Greer accused China of trying to control the world’s technology supply chains in an interview with CNBC on Tuesday. Beijing’s actions will determine whether the tariffs take effect, Greer said.

Trump wants to work with Beijing and is still scheduled to meet with Xi in South Korea later this month, Greer told CNBC. Beijing is open to talks with the U.S., China’s He said Thursday.