Trump threatens to pull out of planned Xi meeting

President Donald Trump has hit out at China, after the country tightened its rules for exports of rare earths and opened an investigation into a major US tech company.

In a post on social media, Trump accused Beijing of trying to hold the world "captive" and said there was now no reason to meet with President Xi Jinping later this month as had been expected.

He also threatened a "massive" increase in tariffs on Chinese goods, indicating a return of renewed trade tensions between the two economic giants.

Financial markets dropped in the wake of the remarks, with the S&P 500 down roughly 1.4% in late morning trade in New York.