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U.S. Secretary of State Mike Pompeo announced $113 million in new technology, energy and infrastructure initiatives in emerging Asia on Monday, at a time when China is pouring billions of dollars in investments into the region.

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The US’s decision to restrict the import of investment capital from China has pushed the latter into the arms of the EU, suggesting a bilateral investment deal could be in the making, as both Brussels and Beijing are disgruntled by the new US trade policies.

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President Trump further escalated his trade fight with China on Monday, saying his administration was prepared to impose tariffs on another $200 billion worth of Chinese goods and potentially even more if Beijing continues to fight back.

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State media reacts defiantly after White House’s suggestion that it could still impose tariffs on US$50 billion of Chinese goods

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The White House has taken aggressive new steps in its effort to reduce a $337bn trade deficit with China, announcing that it will impose a 25% tariff on $50bn of Chinese goods containing “industrially significant technology”.

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President Donald Trump said Tuesday that his administration has not yet reached a deal with Beijing to save telecom company ZTE.

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China is offering US President Donald Trump a package of trade concessions and increased purchases of American goods aimed at cutting the US trade deficit with China by up to US$200 billion (S$269 billion) a year, US officials familiar with the proposal said.

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Chinese Vice Premier Liu He arrives in Washington on Tuesday for trade talks with the U.S. delegation led by Treasury Secretary Steven Mnuchin.

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Chinese Ambassador to the United States Cui Tiankai said here Friday that the trade imbalance between China and the United States cannot and will not last in the long run.

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The United States and China have agreed to take action by mid-July to increase access for U.S. financial firms and expand trade in beef and chicken among other steps as part of Washington's drive to cut its trade deficit with Beijing.

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