China Has No Intention of Replacing the US, Foreign Minister Maintains

China's Foreign Minister Wang Yi attends a news conference during the ongoing NPC in central Beijing

China's Foreign Minister Wang Yi attends a news conference during the ongoing NPC in central Beijing

While China has cautioned against Trump's announced aluminum and steel tariffs, warning they could spark a trade war that would harm the USA above all, the tariffs on metals wouldn't really hurt Chinese businesses, as China exports just 1.1% of its steel to the US.

Some reports suggested he could sign the presidential proclamation as soon as Thursday.

Wang said China's proposal for the United States, Japan and South Korea to suspend joint military drills in the region in return for North Korea halting its nuclear and missile tests was "the right prescription".

"On paper, China has more to lose from a trade war - it exports far more to the USA than it imports", Capital Economics said.

His departure leaves "nationalist" advisors like arch China sceptic Peter Navarro, author of "Death by China", and Commerce boss Wilbur Ross with the president's ear. -China trade frictions either.

"Our relationship with China has been a very good one, and we look forward to seeing what ideas they come back with", the president stated.

He did not give details on how such a request had been conveyed.

The goods trade deficit with Canada hit a three-year high of $3.6 billion.

Relate Tariffs may help Big Steel, but hurt the smaller manufacturers What you need to know about Trump's steel and aluminium tariffs How seriously should the world take this tariff talk? .

Meanwhile, Europe and the International Monetary Fund issued strong warnings to Washington to step back from the brink of a trade war.

Worries of a trade war were heightened on Tuesday by the resignation of Gary Cohn, Trump's top economic advisor, spooking financial markets.

"Many said they feared tit-for-tat retaliation which could spiral out of control, damaging the global economy and the multilateral trading system", WTO spokesman Keith Rockwell said.

February's surplus did edge downwards from the $21.9 billion recorded in January and $25.6 billion from December.

Wang said the security concerns of North Korea must be addressed in return for progress towards denuclearization.

"The truth is quite the opposite". That is not to mention use of non-tariff measures, such as direct pressure on American companies operating in Asian giant, "in form of stricter regulatory controls or simply by instructing Chinese companies to cut orders".

A White House official said Trump was referencing an ongoing investigation of China in which the United States trade representative is studying whether Chinese intellectual property rules are "unreasonable or discriminatory" to USA business.

"We do not want this to go out of proportion, but ... if it does happen we will have to take measures to protect European jobs".

Dangling exemptions for Canada and Mexico "undermines" the administration's argument that the tariffs are needed to protect United States national security, according to Inu Manak, a visiting scholar at the Cato Institute.

Analysts at UBS also attribute the export growth partly to a low base in January, and a weaker dollar which inflates the USD value of any export figures. But Kushner's fate in the White House is uncertain after he lost his security clearance for top secret information, Ross has been marginalised and Mnuchin is largely involved with domestic issues, the source said.

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