RegulationTrump
|3 min ReadBitcoin falls, stocks slip as China accuses U.S. of panic
Maya Chen
Senior Analyst
Published
Jan 16, 2026
Beijing’s rebuttal shakes risk assets
Bitcoin broke lower on Thursday afternoon. Stocks followed. The spark was political and clear. China said Washington was “deliberately creating unnecessary misunderstanding and panic.”
A day earlier, U.S. Treasury Secretary Scott Bessent said, “This is China versus the world,” after Beijing tightened rare earth export controls. The comment landed. Then China’s Ministry of Commerce spokesperson He Yongqian answered in a press briefing. Markets flinched.
“The U.S. interpretation seriously distorts and exaggerates China’s measures, deliberately creating unnecessary misunderstanding and panic,” He said. “The accusations from the U.S. reveal that the U.S. is projecting its own behavior onto others.”
Tariffs and fees escalate
China already dominates rare earths, controlling about 90 percent of production. Last week it expanded export controls. The White House pushed back. President Donald Trump threatened 100 percent tariffs on Chinese goods. Beijing then sanctioned five U.S. subsidiaries of Hanwha Ocean, a South Korean shipbuilder tied to the U.S. government.
The trade tools kept coming. Washington invoked Section 301 of the U.S. Trade Act. It tripled fees on Chinese maritime vessels from 46 per net ton and proposed tariffs up to 150 percent on several maritime items arriving from China. Beijing answered with a $56 per net ton fee on American ships.
Bessent later criticized China’s tactics on camera and even called one representative “slightly unhinged.” The rhetoric was loud. The market reaction was louder. Everybody knows it.
Market snapshot
Bitcoin was down 2.98 percent at 107,642.18 and a 24-hour high of $111,990.81, per Coinmarketcap. The weekly change was negative 10.73 percent.
(BTC price / TradingView)
Twenty-four-hour volume rose 12 percent to 2.15 trillion. Bitcoin dominance slipped 0.19 percent to 59.38 percent.
(BTC dominance / TradingView)
Futures open interest edged up 0.50 percent to 227.93 million. Longs took the bigger hit at 55.67 million.
The message is simple. Trade pressure rose. Words turned sharp. Risk assets sold off. Incredible timing, but not surprising.
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