President Trump has imposed 25 per cent tariffs on $50bn worth of Chinese goods, accusing Beijing of intellectual copyright theft.
The US and The White House has said it will impose further tariffs if China retaliates.
Trump has stated that the tariffs were aimed at hitting the Made in China 2025 plan aimed at making its high-technology industries dominant, citing that the plan would hurt 'economic growth for the United States and many other countries.'
The US wants China to stop practices that allegedly encourage transfer of intellectual property - design and product ideas - to Chinese companies, such as requirements that foreign firms share ownership with local partners to access the Chinese market.
The Chinese foreign ministry spokesman, Geng Shuang, warned that all trade talks between China and the US would be void is Washington imposed trade sanctions, stating that 'we will take necessary decisions to safeguard our legitimate rights and interests.'
Many fear that Trump administration's trade policies could hurt the US economy, undermine the world's trade system and incite a trade war that would lead to losers on both sides.