China says wants 'calm' resolution to US trade war

Chinais willing to resolve itstradedispute with the United States through "calm" negotiations and resolutely opposes the escalation of the conflict, Vice Premier Liu He, who has been leading the talks with Washington, said on Monday.

The increasingly bittertradewarbetween the world's two largest economies sharply escalated on Friday, with both sides levelling more tariffs on each other's exports.

Add WION as a Preferred Source

US President Donald Trump announced an additional duty on some $550 billion of targeted Chinese goods on Friday, hoursafterChinaunveiled retaliatory tariffs on $75 billion worth ofUS goods.

However, Trump appeared on Sunday to back off on his threat to orderUS companies out ofChina.

Liu, speaking at a tech conference in southwestChina's Chongqing, said nobody benefited from atradewar.

"We are willing to resolve the issue through consultations and cooperation in a calm attitude and resolutely oppose the escalation of thetradewar," Liu, who is President Xi Jinping's top economic adviser, said, according to a government transcript.

"We believe that the escalation of thetradewaris not beneficial forChina, the United States, nor to the interests of the people of the world," he added.

US companies are especially welcome inChina, and will be treated well, Liu said.

"We welcome enterprises from all over the world, including the United States, to invest and operate inChina," he added.

"We will continue to create a good investment environment, protect intellectual property rights, promote the development of smart intelligent industries with our market open, resolutely oppose technological blockades and protectionism, and strive to protect the completeness of the supply chain."

It was not clear exactly how Trump could getUS companies to leaveChina.

US Treasury Secretary Steven Mnuchin said Trump could order companies out ofChinaunder the International Emergency Economic Powers Act if he declared a national emergency.

Thetradewarhas damaged global growth,upset allies, and raised market fears that the world economy will tip into a recession.

Global stock markets reeled on Monday after the latest measures, whileChina's yuan currency fell to a fresh 11-year low.

Investors streamed into the safe harboursof sovereign bonds and gold.

Chinese state media on Monday blasted the United States.

The officialChinaDaily said in an editorial that Washington would "never be allowed to controlChina's fate".

"It has become unquestionably clear that his administration's tariffwaragainstChinais politically motivated.

What Washingtonwantsfrom its largesttradepartner is for it to be content to play second fiddle and meekly do as it demands," the English-language paper wrote in an editorial.

"Washington has again taken the initiative to escalate the fight in the hope that Beijing will throw in the sponge as early as possible. But Beijing regards thetradewaras an unavoidable trial by fire, from which the country will emerge stronger."

The Global Times, a widely-read tabloid published by the ruling Communist Party's official People's Daily, said leaving the Chinese market would be "suicide" forUS companies, especially for auto firms.

"US companies are welcome to invest and operate in the Chinese market, but if someUS companies want to obey Trump's order and join Washington'stradewar, the result is bleak. A decision to give up the Chinese market is just suicide," the paper said in its editorial.