China's exports fell unexpectedly in April, adding to pressure on Beijing ahead of negotiations on ending a tariff war with Washington over Chinese technology ambitions. Liu has been described by some officials as the "closer" who has the authority to negotiate on Chinese president's Xi Jinping's behalf.
"Regarding the China-U.S. trade war, China has always been reluctant to fight, but is not afraid to fight, and will fight when necessary", Xinhua said.
USA officials have accused China of reneging on commitments made during months of negotiations aimed at ending their trade war.
Well, since the U.S. has already gained the initiative, not to mention that Trump is a master of flip-flopping, perhaps what Beijing can do in order to prevent the trade talks from totally falling apart is to make further concessions on Washington's terms.
The swift deterioration in negotiations between the world's two largest economies has jolted global financial markets, which had been increasingly betting that a deal would be reached soon.
"I think it's a major risk that Trump raises tariffs", said Christophe Barraud, chief strategist at brokerage Market Securities in Paris.
China and the United States have been engaged in a trade dispute since last June, when Trump announced that the United States would subject $50 billion worth of Chinese goods to 25 percent tariffs in a bid to fix the over $400 billion USA trade deficit with China. Followed by the reveal of escalating bitterness between U.S. and China, trade-sensitive Frankfurt's DAX had taken the worst-hit, as it fell more than 1 percent, while London's FTSE 100 posted a gain of 0.40 percent, largely buoyed by an upbeat oil price and a weaker British currency.
Crude oil prices had dropped as renewed U.S. "On the basis of mutual respect and equality, we will resolve each other's legitimate concerns and strive to reach an agreement of mutual benefit and win-win". "We just hope they come to fruition quickly". China said Tuesday its economy czar will participate as scheduled.
Trump pushed for sweeping changes to China's policies on intellectual property theft, technology transfers industrial subsidies and market access.
No details of the talks have been released.
One private-sector source briefed on the talks said the last round of negotiations had gone very poorly because "China got greedy". Manufacturers dependent on foreign material, retailers and other importers have been charged more than $15 billion in the previous year, according to federal data, though the impact directly felt by consumers has been relatively minimal. The Chinese have retaliated by targeting $110 billion in US imports.
A stumbling block in the talks is USA insistence on an enforcement mechanism with penalties if Beijing fails to keep its promises.
Shares in Europe and Asia mostly fell Wednesday and Wall Street was poised to open lower as representatives from the USA and China prepared to resume trade talks in a last chance to stave off more tariff increases.
Chinese negotiators have balked at what economists say they might see as giving Washington too much control.
"Even though there's some real issues in Wisconsin, there's a great deal of support for what he's trying to accomplish", said Sen. "After all, it concerns the rights of a sovereign country".