WASHINGTON:

US President Donald Trump threatened to hike tariffs on Chinese exports and cancel a meeting with President Xi Jinping, in a broadside against Beijing on Friday that sent markets and relations between the world's largest economies into a spiral.

Trump, due to meet Xi in about three weeks in South Korea, complained on social media about what he characterised as China's plans to hold the global economy hostage after China dramatically expanded its rare earth element export controls on Thursday.

China dominates the market for such elements, which are essential to tech manufacturing. Trump said there was no reason to hold the meeting with Xi that he had previously announced. Beijing had never confirmed the meeting between the leaders.

The remarks signalled the biggest rupture i

See Full Page