Chinese 10-year treasury futures for September delivery, the most-traded contract, were 0.27 percent lower at 95.580.
To understand why the United States and China stand on the brink of a trade war, consider the near-death experience of American Superconductor Corp. Beijing also accused Washington of breaching trade rules of the World Trade Organisation (WTO). But many consumer industry groups say American consumers are likely to bear the brunt of the fight. -Chinese tensions, Zarit said.
Tamur Baig, chief economist with DBS, takes a slightly contrarian view, arguing although China's exports to the United States are worth more than the trade flowing the other way, the US's lower growth rate makes it more vulnerable to a slowdown.
The global commercial order is being shaken by the Trump administration's use of an obscure U.S. trade-law provision on national security to justify steel and aluminium tariffs against a host of countries including defence allies.
So far the rhetoric, and action, from China has signalled that it will continue to respond proportionately to anything the U.S. does.
In a commentary on Wednesday, China's official Xinhua news agency said China and Europe "should resist trade protectionism hand in hand". The additional USA goods to China could come at the expense of European competitors. "They firmly believe that free trade is a powerful engine for global economic growth".
A foreign ministry spokesman, Hu Chunhua, on Friday gave no details of the increase. On Thursday, Commerce Ministry spokesman Gao Feng hit back at "threats and blackmail" ahead of the planned US tariff hike.
The trade war between the U.S. and other major economies escalated on Friday after Washington and Beijing launched punitive import tariffs on $34bn (£25.7bn) worth of each other's goods. BMW warned in a letter to Commerce Secretary Wilbur Ross on Friday that tariffs would make it harder for it to sell in China the vehicles it builds at its factory in Spartanburg, South Carolina, "potentially leading to a strongly reduced export volumes and negative effects on investment and employment in the United States".
What the U.S. really wants to target though are things produced under China's Made in China 2025 policy.
The U.S. Chamber of Commerce, which has come out against the Trump administration's trade policy, published a state-by-state analysis of what it says the effects of that policy will be.
China is putting pressure on the EU to issue a strong joint statement against President Trump's trade policies at the summit but is facing resistance, European officials said. Washington does not have the right to ask Beijing not to develop something and it is impossible for China to listen to its command...
Brussels shares Washington's concern about China's closed markets and what western governments say is Beijing's manipulation of trade to dominate global markets.
The total value of the USA tariffs on China amounts to $50bn, though they will come into effect in two tranches, with the first round covering 818 products worth about $34bn having come into force on Friday.
China has promised to open up. China said it will immediately put on his own similarly sized tariffs on an unspecified clutch of American goods.
Nancy Johnson, executive director of the North Dakota Soybean Growers Association, said prices have dropped in the past month, but "we typically are not selling a large number of soybeans at this time of the year".
However, China's offer at the upcoming summit to open up reflects Beijing's concern that it is set to face tighter European Union controls, and regulators are also blocking Chinese takeover attempts in the United States.