China's commerce ministry said Beijing will fight back firmly with "qualitative" and "quantitative" measures if the United States publishes an additional list of tariffs on Chinese goods, accusing Washington of launching a trade war.
Stocks fell Tuesday after President Donald Trump asked for $200 billion in Chinese exports to be identified for a fresh round of tariffs.
Some companies have reported Beijing is meeting with Chinese businesses to discuss shifting contracts for us goods and services to suppliers from Europe or Japan, or to local Chinese firms, Parker said. If Intel makes a chip at its U.S. plants in Oregon, Arizona or New Mexico, then sends it to China for low-level assembly work and then brings it back so it can be put into a device manufactured in the United States, the chip would get hit by the tariff.
"Trump is playing a game of chicken, who will blink first", said Ivan Feinseth, chief investment officer at Tigress Financial Partners.
"Whether that's threatening our technology leadership through intellectual property theft or forced technology transfer, we are hard at ensuring that we protect American property", he said.
"Further action must be taken to encourage China to change its unfair practices, open its market to United States goods, and accept a more balanced trade relationship with the United States".
US business groups said members were bracing for a backlash from the Chinese government that would affect all American firms in China, not just in sectors facing tariffs.
The White House says the USA can withstand trade tensions. Most of those entities are legally based in China because that is where most electronics are built, and that explains why Intel booked $14.8 billion in Chinese revenue in 2017.
The declines in the US markets followed a global rout.
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"China's threat "clearly indicates its determination to keep the United States at a permanent and unfair disadvantage", Trump said Monday".
China had offered to ramp up purchases of American goods by only $70 billion to help cut the yawning trade imbalance with the United States, whereas Trump had demanded a $200 billion deficit cut.
President Donald Trump pumps his fist as he leaves a meeting Monday in the East Room of the White House in Washington.
After all, the USA sells much less to China than the other way around.
The China trade offensive is only one side of Trump's multi-front battle with all major United States economic partners.
Also caught in the crossfire was Chinese telecoms company ZTE Corp, (0763.HK) (000063.SZ) whose rescue by Trump in a deal with Chinese President Xi Jinping appeared in doubt after a U.S. Senate vote on Monday.
The ratcheting up of tensions is a blow to sentiment in the struggling US$7.2 trillion equity market, where turnover has been dwindling on concern the trade dispute will hurt China's already-slowing economy.
Additionally, the president has promised further escalation in his attack on China's alleged theft of intellectual property and unfair trade practices should it respond with more tariffs on USA goods, promising to pursue tariffs on yet another $200bn of Chinese products.
However, many economists and businesses in the USA say the tariffs are likely to hurt some of the sectors the administration is trying to protect, which depend on China for parts or assembly. "And as a USA soybean farmer with the prices below break even now, it's definitely not good for us, either". It also scrapped agreements to narrow China's trade surplus with the United States by purchasing more American farm goods, natural gas and other products.