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American companies in China have much at stake in the trade dispute

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US President Donald Trump and China's President Xi Jinping shake hands after making joint statements at the Great Hall of the People in Beijing

US stocks plunged more than 2 percent Friday after Trump threatened to impose tariffs on an additional $100 billion worth of Chinese goods beyond the $50 billion worth of products he had already said would be affected.

Speaking at the Boao Forum for Asia in China's Hainan province, Xi vowed to open China's economy further, protect intellectual property of foreign firms and he criticized a "Cold War mentality" as obsolete, in his first public comments since the trade dispute with U.S. President Donald Trump's administration erupted. -China tariffs will escalate into a full-scale trade war that would threaten global growth.

While the trade deficit balloons, China continues to steal United States intellectual property and force American companies operating there to surrender their leading-edge technologies in exchange for access to the Chinese market.

Fan Gang, an influential economist and adviser to China's central bank, on Sunday flagged the possibility of a United States trade war as the U.S. economy faces pressure from China's rapid development. He took to micro-blogging site to highlight imbalanceof trade between China and the United States.

He also pledged to strengthen the protection of intellectual property inside China, which has been a focal point of criticism from the Trump administration, and increase China's imports from other countries by lowering some tariffs.

"I think it's so clearly in the interest of both countries that we have a constructive trading relationship and that we have substantive talks to redress these issues".

"President Xi's speech could create a very good platform to launch U.S". Beijing fired back with its own $50 billion list of US goods for possible retaliation. "And as you know, I spent two days in China, the president spent two days with us at Mar-a-Lago in Florida, and they were four great days", he said.

There has been no indication that Trump and Xi have had any conversations since the trade conflict erupted last week and no formal trade talks between the United States and China have been scheduled yet.

China had a "genuine desire" to expand its imports and will "considerably reduce auto import tariffs", he said.

"Farmers export meat, soybeans, fruit and other products to China that have been targeted by China", said Jeff Rios, treasurer of the DePaul Democrats. And he said that although the USA hoped to avoid taking action, Trump "was not bluffing".

"As China's economy is stable and improving.the China-US trade friction will impact our economy, but the impact will be limited", Wang Changlin, a researcher at the National Development and Reform Commission, wrote in a post on the commission's official microblog account.

Senior U.S. officials are trying to convince investors tariffs are unlikely to be imposed so as not to trigger a fall in equity prices or business confidence.

"[President Trumps] vision is that of a global trading system free of the imbalances and unfair practices that now hold growth back, not just in the United States but around the world".

China is opening sectors where they already have a distinct advantage, or a stranglehold over the sector, so for example banking as well. The U.S. plans to apply those tariffs to almost $50 billion worth of goods that include software and other technologies, but they could prove costly for Trump's anti-theft agenda in the long run.

US Treasury Secretary Steven Mnuchin said the White House hoped to negotiate but acknowledged a trade war was a possibility.

'If the US says that it will pay any price, it must be firmly attacked, ' China's official Xinhua news agency said on Saturday.

"There is no way for us to address China without absorbing some pain here", Graham said.

His speech at the Boao Forum for Asia - often referred to as Asia's Davos - appears to be an attempt to calm a trade row with the US.

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