China cancels trade talks with US: Report

China has reportedly called off trade negotiations with the United States scheduled for next week after deciding not to send Vice Premier Liu He to Washington, The Wall Street Journal reported, citing people familiar with the matter.

According to the report, Beijing is also not planning to send a lower-level delegation to the US ahead of Liu's proposed visit. The Chinese government had not officially announced the cancellation at the time of the report.

The move threatens to further strain relations between the world's two largest economies, which have been locked in an increasingly bitter trade dispute.

The latest setback came after the US imposed an additional 10 per cent tariff on $200 billion worth of Chinese imports earlier in the week. Washington also warned that it could impose additional duties on another $267 billion worth of Chinese goods, potentially bringing almost all Chinese imports into the US under additional tariffs.

China responded with retaliatory tariffs on $60 billion worth of American products, signalling that Beijing was prepared to escalate rather than back down.

The latest measures added to tariffs already imposed by both countries on $50 billion worth of each other's goods.

The dispute has expanded beyond individual products and become a broader confrontation over trade, market access and the economic relationship between the two countries. The cancellation of the planned talks could make it more difficult for Washington and Beijing to find a negotiated solution and raises the prospect of further tariff increases.

Businesses on both sides are likely to face greater uncertainty if the standoff continues, as higher import duties can increase costs, disrupt supply chains and affect companies that rely on cross-border trade.

The reported decision also came at a sensitive stage in the negotiations, with both governments facing pressure to protect domestic industries while preventing the trade conflict from causing wider damage to their economies.