US President Donald Trump sent a friendly message to China on Sunday as Chinese state media ramped up their rhetoric in the trade dispute with the US, recalling China's Korean war mettle and warning Washington that it was becoming the enemy of a multipolar world.
Despite the ongoing dispute, the US President today insisted that a deal on intellectual property with China would mean a "great future for both countries".
The Trump administration's threats against China, including the two probes, don't lead to tangible action over the rest of 2017 as Trump shows restraint amid a budding relationship with his Chinese counterpart Xi Jinping.
Beijing imposes tariffs on United States imports worth around $3 billion, including a 15% duty on 120 American products including fruits, nuts, wine and steel pipes and a 25% tax on eight others, like recycled aluminum and pork.
Markets in Asia fell on fears that the United States and China were about to embark on a trade war.
On Tuesday, Washington unveiled some $50bn worth of proposed tariffs on Chinese imports and on Thursday Trump upped the ante, directing U.S. trade officials to identify tariffs on another $100bn of Chinese imports.
A deal addressing China's theft of US intellectual property is also expected to be made.
At the same time, China has asked the US to avoid taking US-China trade relations to a "dangerous place". China will take down its Trade Barriers because it is the right thing to do.
Sen. Lindsey Graham, R-S.C., acknowledged that USA industries may take a short-term hit in the trade dispute, saying, "There is no way for us to address China without absorbing some pain here". China's $3 billion counter punch to Donald Trump's tariffs is just the first move from the world's second-largest economy, according to a Bloomberg report.
However, experts warn that 2018 could be a different story, calling a trade war between the two gargantuan economies increasingly likely.
Mnuchin said he doesn't expect a full-blown trade war, as farmers in Iowa begin to feel a hit from the tit-for-tat tariff increases..
"They must end unfair trade, take down barriers and charge only reciprocal tariffs".
That comes after on Chinese imports and limit the country's investment in the US.
"We hope that the USA side, with sense and long-term picture in mind, refrain from going further down the wrong path".
The Chinese government announces yet another set of retaliatory tariffs that almost mirror the Trump administration's proposal a day earlier - 25% on a range of products from the USA, worth approximately $50 billion.
Trump's actions will not help generate any goodwill for American companies trying to do business in China, he added.
Could services be next in China's sights to defend its interests "at any cost" in a United States trade war?
While the China New Zealand Business Council said a trade war would be disruptive and could undermine confidence in global markets. "Our objective is free and fair trade". He declined to comment on the progress of any back-channel talks with Beijing.
The advance in the Dow Jones Industrial Average since Trump's inauguration is now 20.7 percent, placing the former NY real estate developer in eighth position at this point in his tenure among presidents since 1900, according to data compiled by Bloomberg.
"If the cost of the American products rises, we will shift our imports to other countries which will be a blow to American manufacturers and farms", he said.