China not to compromise on matters of principle, economy resilient: vice premier

Vice Premier Liu He said Chinese and US trade negotiators have agreed to meet again in Beijing in the future, and called on both sides to remain calm and not escalate trade tensions, after the 11th bilateral trade negotiations concluded in Washington on Friday local time.

The Chinese economy remains resilient over the medium and long term and China is not afraid, said Liu.

The 11th round of trade talks between China and the US wrapped up in Washington in the early morning on Saturday Beijing time. 

"It is normal that we have small twists and turns during talks. It's inevitable," Liu said, telling reporters after the negotiation that both sides have clarified their stands and discussed the content of their next negotiation. 

Liu also said China will not compromise when it comes to "matters of principles." Neither China nor the Chinese people are afraid, he added.

Liu also confirmed that China will be forced to take countermeasures after the US on Friday increased an existing 10 percent tariff on $200 billion in Chinese goods and products to 25 percent.  

Adding tariffs will harm the economies of both countries and the world, and does not serve any good in solving the bilateral economic and trade issues, said Liu. 

Liu said he is prudently optimistic about the future, saying the Chinese economy has great prospects over the long term. 

China should focus on its own thing, said Liu, pointing out that last year the Chinese economy reached the bottom of an economic cycle and is now on the rise. 

The Chinese market is still vast with huge consumption and investment demands, which is obvious to the world, noted Liu. With the supply-side reform, the competitiveness of companies has been elevated, he said. 

There is still sufficient room for fiscal and monetary policies and enough tools in the policy toolkit As long as China and the Chinese people maintain confidence, China's economy will maintain a smooth and healthy development despite some pressures, said the vice premier. 

The Chinese stock market on Friday dropped sharply but rebounded quickly to close high. The purchasing manager's index remains above the 50 percent threshold in April.

Chinese negotiators hope their US counterparts understand that China needs to be treated fairly and with dignity in order to reach a deal, Liu said.