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 news 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 Represen

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