WASHINGTON, Sept 17 (Reuters): The Chinese government may decline to participate in proposed trade talks with the United States later this month if the Trump administration moves forward with additional tariffs on imported Chinese goods, the Wall Street Journal reported on Sunday, citing Chinese officials.
The US had proposed the talks, but at the same time moved forward with planning additional tariffs on some $200 billion of Chinese products, the Journal reported.
The report quoted one senior Chinese official saying the country would not negotiate "with a gun pointed to its head."
Other officials who advise the country's leaders are suggesting China impose limits on the sale of parts and supplies needed by US businesses, using "export restraints" to threaten their supply chains.
Fresh trade talks had been proposed by Treasury Secretary Steven Mnuchin to begin around Sept. 20.
Though China had begun discussing plans to attend, but began rethinking whether to attend because of the possibility new tariffs may be announced this week.
Another report from Beijing adds: China will not be content to only play defence in an escalating trade war with the United States, a widely read Chinese tabloid warned, as US President Donald Trump was expected to announce new tariffs on $200 billion in Chinese goods as early as Monday.
The United States and China have already levied duties on $50 billion worth of each other's goods in an intensifying row that has jolted global financial markets in the past few months.
Last week, the US Treasury Department invited senior Chinese officials, including Vice Premier Liu He, to more talks on the tariff dispute, though scepticism remained high among trade observers on both sides over the prospects of a breakthrough.
China's Foreign Ministry reiterated that the escalation of the trade conflict was not in anyone's interest.
"We have always maintained that the only correct means to resolve the trade dispute is through dialogue and consultation on an equal basis with mutual trust and respect," ministry spokesman Geng Shuang told a regular news briefing.
A senior administration official told Reuters over the weekend that Trump was likely to announce the new tariffs as early as Monday.
In early morning tweets, Trump said imposing tariffs strengthened the United States' bargaining position and that so far any cost increases on goods had been "almost unnoticeable".
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