China’s 10-year government bond yield dropped to around 1.75% on Monday, hitting its lowest level in five weeks, as investors moved toward safer assets after US President Donald Trump threatened to impose an additional 100% tariff on Chinese goods in retaliation to Beijing’s new export curbs on rare earth minerals. China vowed to retaliate if the tariffs are implemented, and struck a defiant tone, saying it was “not afraid” of a trade war. Analysts noted that Beijing’s recent moves may be aimed at strengthening its negotiating position ahead of further discussions. However, in a follow-up post and comments to reporters, Trump later said trade relations with China “will all be fine,” hinting at openness to talks and a potential meeting with President Xi. Meanwhile, even as a trade deal with the US remains elusive, September trade data showed China’s exports grew at their fastest pace in six months, while imports posted their largest increase in over a year.