Both countries have been engaged in a furious feud amid the President’s call for fair trading practices that don’t take advantage of the US economy. Earlier this month, Donald Trump escalated tensions further by increasing tariffs on $200billion worth of Chinese imports, more than doubling from 10 percent to 25 percent. China immediately retaliated, slapping tariffs on thousands of US products worth around $60billion.
The global superpower also imposed a 25 percent tariff on a few thousand other products, including soy oil, peanut oil, petrochemicals and frozen minerals.
On Thursday, Mr Trump insisted the freshly-imposed US tariffs are having a rapid impact on China’s economy, and will ultimately force Beijing into agreeing a trade deal.
The US President even hinted a breakthrough with China, and said: “I think we’re doing very well with China. We’ll see what happens.
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“I can tell you China very much wants to make a deal because the companies are leaving China to avoid the tariff.”
But Dai Xianglong, former Governor of the People’s Bank of China, has rejected the suggestion a breakthrough is in the offing.
He warned while Chinese President Xi Jinping and Trump are due to meet at the G20 summit in Japan next month, it remains extremely unlikely the trade war will finally end.
Mr Xianglong told a seminar of China-US technology development in Beijing on Friday: “Leaders of China and the US will meet late next month in Japan and I hope there will be positive news from the meeting.
“However, any breakthrough would not be easy because it is actually very difficult for the US side to form a powerful and systematic correction that can right the wrongs made by President Trump.”
On Thursday, US Vice President Mike Pence said he was hopeful a meeting between the two Presidents would take place at the G20 summit, but he warned China must agree to reforms.
Earlier this week, Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission, insisted the impact of the trade war own China was small.
He also expressed confidence Beijing would be able to manage any fallout.
China’s reaction to apparent US aggression has been stepped up over recent weeks, stressing it would never bow to foreign pressure.
The global superpower has urged Washington to return to the negotiating table as soon as possible.
During a visit to the central province of Jiangxi earlier this month, President Xi urged China to “start all over again”, suggesting Beijing had given up hope of striking a deal with the US in the short-term, and was preparing for a longer-term struggle.