US to escalate China trade war if no deal agreed soon: Trump aide

US is likely to ramp up pressure on China by raising existing tariffs if a tre deal is t reached soon between two countries, a key White House viser has said.

world's two largest ecomies have been locked in a bruising tre war since Trump in March last year imposed tariff hikes of up to 25 per cent on USD 250 billion of Chinese goods.

In response, China, world's second largest ecomy after US, imposed tit-for-tat tariffs on USD 110 billion of American goods.

Michael Pillsbury, viser to White House on China policy, said that Trump would likely escalate tre war by raising existing tariffs, if deal is reached.

Re - 'Howdy Modi' Fun Facts: From Tre To Samosas, All You Need To Kw

In an interview in Hong Kong on Thursday, Pillsbury said that Trump h been remarkably restrained in pressure he has brought to bear on China in tre field.

Both sides so far have held 12 rounds of talks but failed to work out a deal as China continued to resist Trump's demand for intrusive verification mechanism to supervise Beijing's promise to protect intellectual property rights (IPR) techlogy transfer and more access to American goods to Chinese markets.

Trump delayed a planned tariff hike on USD 250 billion of Chinese goods as a "gesture of good will" ahe of China's 70th year of National Day celebrations on October 1.

two countries are preparing for next round of tre talks in Washington in October.

Re - Trump Says 'Tre Deal With China Before Or After 2020 Elections'

Does president have options to escalate tre war? Yes, tariffs can be raised higher. se are low level tariffs that could go to 50 per cent or 100 per cent, Pillsbury was quoted as saying by Hong Kong-based South China Morning Post on Sunday.

Trump's critics were wrong to assume President was just bluffing when he threatened an all-out tre war, he said.

re are or options involving financial markets, Wall Street, you kw, president has a whole range of options, he said.

Pillsbury said Trump was t seeking to cripple US-China tre, inste positing that he wanted to increase level of tre to rectify deficit.

Meanwhile, a veteran Chinese ecomic policymaker has for first time revealed intrusive American demands saying that US is trying to colonise China with a tre deal.

Re - South Korea Drops Japan From 'white List' In Tre Row

Li Deshui, a former chief of China's statistics bureau, wrote in an article that that US h specifically demanded that China amend its domestic laws and proposed to establish a permanent bilateral office to debate Beijing's ecomic policies.

In dition, Washington h requested a one-sided enforcement mechanism that allowed it to impose sanctions on China if it was unhappy with ecomic policies, but China could t retaliate, Li was quoted as saying by Post.

US h also tried to restrict China's hi-tech industry and state-owned enterprises by asking China to open up its financial sector and markets unconditionally, Li said.

It is first time that a senior figure in Beijing has revealed US' demands in tre talks.

It was impossible for Beijing to agree to any of US demands as y were asking China to give up its ecomic sovereignty, Li wrote.

Re - PM Modi Meets New Jersey Goverr, Discusses Tre And Or Ties

This is a wholly unfair treaty that seeks to colonise China's ecomy. If this is accepted, n it is giving up China's development path, giving up China's rights of development, and making China a vassal of US, Li wrote in article reviewing China's ecomic achievements and setbacks in seven deces since People's Republic of China was founded as well as challenges ahe.

It's almost 2020 and US is trying to bully China. US is trying to get what it cant get in ecomic competition through a piece of paper it's absurd. Chinese government and Chinese people will never agree! Li wrote.