Trade tensions between the world’s two largest economies escalated last weekend, when the US raised tariffs on $200 billion in Chinese goods from 10% to 25%.

White House economic adviser Larry Kudlow also responded on Fox yesterday that China needs to agree to `very strong` enforcement monitoring terms to reach an agreement.

However, in a commentary this morning, People’s Daily (China) said: `China will never sacrifice national dignity. No one should expect China to swallow the bitter fruit and accept the damage.`

The US – China leadership delegation met at the G20 in Argentina in December 2018.

Global Times today also said China has no reason to fear a trade war.

Yesterday, in a post on Twitter, Mr. Trump continued to affirm America’s favorable position in trade tensions.

However, import taxes are paid by companies importing Chinese goods.

`We are in great shape to overcome more than 20 years of unfair trade with China,` he said, `This is a risk we can take without having a major impact on the economy.`

Kudlow also affirmed that there is a `high possibility` that Trump will meet Chinese President Xi Jinping at the G20 Summit in Japan at the end of June. Until last week, observers still expected the two leaders to meet soon.

Reuters quoted a close source as saying that during the two-day negotiations in the US last week, Chinese Vice Premier Liu He sought to protect the changes that China wanted.

`We want change to be reflected in China’s legal system, not just Government announcements. We need something clearer. And until then, we will not remove

Last Saturday, Mr. Liu also said that China opposes the US raising tariffs, and will respond.

Mr. Trump also asked Lighthizer to begin the process of imposing tariffs on all remaining goods from China.