China and Europe warn trade war could trigger global recession

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"If the US fails to understand China's sense of insecurity, or misinterprets the necessity of the actions that China has taken to alleviate this sense of insecurity, tensions will be inevitable in Sino-US ties", the nationalist tabloid wrote. The leaker either doesn't exist or know the subject very well.

"Both sides agree to firmly oppose unilateralism and protectionism and prevent such practices from impacting the world economy or even dragging the world economy into recession", Liu He, the vice premier of China's State Council, said in a speech quoted by Japan's Kyodo news agency.

The White House on May 29 said the Trump administration would press ahead with restrictions on investment by Chinese companies in the United States as well as "enhanced" export controls for goods exported to China, with details to be announced by June 30.

The Made in China 2025 initiative, which was first unveiled in 2015, seeks to turn the country from the world's factory into a global technology leader, including in biotech, robotics, aerospace and clean-energy cars.

The Dow Jones industrial average fell 1.33 percent, or 328.09 points, to close at 24,252.80.

The report comes after President Donald Trump's "America First" administration earlier this month announced new tariffs of 25% on US$50 billion (RM200 billion) in Chinese imports.

The White House has said previously that details of the investment restrictions, as well as "enhanced export controls" limiting Chinese acquisition of U.S. technology, will be announced by June 30.

The US is due to impose tariffs on $34 billion of Chinese imports from 6 July, and Trump has threatened to impose levies on another $200 billion of Chinese goods.

Russian Federation backs OPEC oil output hike
Iran has objected to having members with additional capacity such as Saudi Arabia fill Venezuelan output gaps. Trump has been calling publicly for the cartel to help lower prices by producing more.

The main headline grabbers have not only been Trump's simmering trade battle with China - although some would argue it was expected given his campaign rhetoric - but also newer feuds that have broken out between the United States and some of its most steadfast allies including the European Union and Canada.

"China has signaled that it would welcome Mattis" diplomatic approach.

Reuters confirmed the curbs on Chinese investment into such technology.

However, the USA wasn't completely unscathed, as earlier that month South Korea filed a dispute with the World Trade Organisation (WTO), claiming the tariffs on washing machines and solar panels were a breach of its rules.

Graham Webster, a senior fellow with Yale Law School's Paul Tsai China Center, said a key question was whether Trump's tariff actions would lead Beijing to link economic issues and security cooperation.

"There are serious structural concerns about Chinese practices that can not be resolved without trust between the negotiating partners" and that trust is eroding in the current confrontation, he told AFP.

German business confidence deteriorated in June, a survey showed on Monday, suggesting the mood among company executives in Europe's biggest economy was darkening in light of the threat of a global trade war.

The government official said the Treasury would invoke the International Emergency Economic Powers Act of 1977 (IEEPA) to devise the restrictions.