China says fully prepared for United States threats on escalating trade war

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In Beijing Chinese foreign ministry spokesman Geng Shuang said Wednesday that "blackmail and pressure from the USA side will never work on China".

Washington imposed additional 25 per cent tariffs on $34 billion of Chinese goods July 6 in response to complaints Beijing steals or pressures companies to hand over technology.

Slapping additional tariffs on Chinese imports - 60 per cent of which are made by foreign firms, including American companies - will only raise costs for domestic U.S. consumers, said Chinese Foreign Minister Wang Yi.

A further escalation of the dispute would be a threat to world trade as a whole.

Officials, however, downplayed suggestions the move was meant to compensate for the recent decline in the value of the Chinese currency, which has threatened to take much of the sting out of Trump's tariffs by making imports cheaper.

At a news briefing, Foreign Ministry spokesman Geng Shuang accused the US of engaging in "blackmail", according to Reuters. "We're not doing 19th century trade", he said.

Tensions between the U.S. and China continue to escalate, after Beijing threatened to hit back if Mr Trump's administration raised imposed tariffs to 25 percent on US$200 billion worth of Chinese goods.

The public comment period on the U.S. tariffs aimed at $200 billion ends August 30 after public hearings August 20-23, according to the U.S. Trade Representative's office.

While American and Chinese officials have hinted at the possibility of restarting talks in recent weeks, it's been nearly two months since they last held high-level negotiations.

"But we don't think such an approach will work", he said.

A first round of tariffs came into effect on 6 July, when the United States imposed 25% taxes on $34bn of Chinese imports. The U.S. responded by promising to support farmers with $12 billion in emergency aid aimed at making farmers better able to withstand the loss of sales to China. The night before the agreement, he proposed in a tweet that "Both the US and the European Union drop all Tariffs, Barriers and".

Trump has threatened to slap tariffs on virtually all of China's exports to the United States.

But it can delay licenses and hold up mergers and acquisition approvals for American businesses and increase inspections of USA products at ports.

The two sides held three rounds of formal talks, beginning with a delegation to Beijing led by Mnuchin in May. "Now, the U.S. coerces and pressures others unilaterally".

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