The two nations have been engaged in a mounting trade war, which has so far seen them launch fiery rounds of tit-for-tat sanctions on exports between the countries.
But as the mounting trade war shows no signs of easing up, US investor and economist Mark Mobious has warned that confrontation could go deeper, as talks between trade negotiators have failed to reach any clear outcome.
Mr Mobious, a founding partner at Mobious Capital Partner: “(China is) going to be tough to begin with and they are not going to give in easily, because you’re talking about a £231million ($300million) trade deficits in China’s favor, so they are not going to give up that easily.
“But I would say, maybe after six months they will come to some agreement and that will be done. But in the meantime, there will a lot of blood on the streets.”
Zeng Qinghong, chairman of Chinese auto firm GAC Group, told CNBC that the trade war between the two nations could have an adverse effect on the global economy.
Mr Zeng said: “We originally planned to launch our ‘Trumpchi’ cars in the U.S. by the end of next year, but now with the introduction of the 25 percent additional tariffs, it has certainly had a pretty big impact on our plans.
In 2017, China imported £99billion ($130billion) worth of US goods while the US brought in a total of £385 ($506 billion) Chinese imports.
Businesses have already expressed concerns over tariffs, which they say could disrupt worker visa applications, delay licenses and increase port inspections.
Tensions between Washington and Beijing continue to escalate, with Mr Trump threatening to impose further tariffs of £203billion ($267 billion) on Chinese products.
China hit back at the US, plying $50billion on US goods and threatening to impose another $60billion if tensions between the two nations do not subside.
The U.S. reached a trade agreement with Canada and Mexico on Sunday night in order to revamp their NAFTA deal.
Now, President Donald Trump looks set to sharpen his hardline trade policy against China using newly-minted treaties with Canada, Mexico and South Korea as leverage.
Since April this year, the yuan has depreciated by eight percent against the dollar.
In the mounting tit-for-tat war, experts warned that Beijing will soon run out of US goods to impose tariffs on.
Because of China’s massive trade surplus of US goods, experts believe Beijing’s retaliatory measures cannot compete with Mr Trump’s damaging tariffs, with the US relying heavily on Chinese imported goods.