Trump, allies play down concerns about effect of trade war with China

US President Donald Trump and China's President Xi Jinping

President Trump Expresses Confidence in Fair Resolution to Trade Dispute with China

"President Xi and I will always be friends, no matter what happens with our dispute on trade".

On Sunday, US President Donald Trump tweeted: "China will take down its Trade Barriers because it is the right thing to do ..."

The intellectual property system is to protect innovation outcomes, ensure fair competition and promote technology transfers so that the innovation achievements could be shared by humanity, Zhang said. "Great future for both countries!"

U.S. Rep. Joe Crowley, D-N.Y., told Fox News Sunday he doesn't oppose tariffs on China, but Trump's approach looks like "chaos", and has "left a lot of Americans with uncertainty".

The president made fixing the trade imbalance with China a centerpiece of his presidential campaign, frequently using incendiary language to describe how Beijing would "rape" the United States economically.

White House economic adviser Larry Kudlow on Sunday downplayed the prospect of a trade war, saying no US actions have actually been taken yet.

But he gave no other details and it was unclear whether the planned changes might mollify Washington, the European Union and other trading partners that complain China improperly blocks access to its markets and subsidises exports.

On Thursday, " Trump led US trade officers to identify tariffs about a second £ 100 billion of Chinese imports, upping the ante in a high-stakes trade confrontation among your world' two largest economies. Mr Trump dismissed China's counter-tariffs, which officials in Beijing described as proportionate and legal, as "unfair retaliation" that will "harm our farmers and manufacturers".

The Trump administration and China have traded threats in recent weeks over potential tariffs.

Another adviser, Peter Navarro, told NBC's "Meet the Press" that while "there are discussions" with the Chinese, the USA is moving forward on tariffs and investment restrictions against Beijing. "What we want from China is very clear". The U.S. sold about $130 billion in goods to China in 2017 and faces a potentially devastating hit to its market there if China responds in kind.

"I'm cautiously optimistic to work this out", Mnuchin said, adding that "I think that we can manage this without significant difficulty to the overall economy".

On Sunday, the state People's Daily newspaper sought to tap into concern among some USA business leaders over the impact of Washington's planned tariffs. "So far, no tariffs and no action have been enacted".

In the wake of Trump's decision in March to impose steep tariffs on steel and aluminum imports, primarily to target China, the USA on Tuesday published a list of US$50 billion in Chinese goods to be hit by tariffs over what Washington says is widespread theft of intellectual property and technology.

Communist Party mouthpiece People's Daily quoted Ministry of Commerce researcher Zhou Mi as saying the United States had abused national security reviews to block Chinese investment in the U.S. and the administration's intervention had become "increasingly frequent and direct".

The president has long talked up his friendship with Xi, whom he has praised for consolidating power in China despite its limits on democratic reforms. It is not President Trump.

Crude oil and global equity markets tumbled on Friday on investor worries about the impact a tariff war could have on the world economy.

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