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U.S. President Donald Trump has warned he may ultimately impose tariffs on more than $500 billion worth of Chinese goods - almost the total amount of U.S. imports from China a year ago - to combat what Washington says are Beijing's trade abuses.

The recent trade skirmishes between the USA and China escalated recently with the Trump administration levying tariffs on an additional $200 billion worth of imports from China.

China's Mr Li asked foreign companies to tell him if they had suffered any theft of intellectual property, one of the US's complaints against China's trading methods.

USA tariff hikes targeting Chinese goods were based on Section 301 of the Trade Act of 1974, its domestic trade law.

"Price hikes caused by the increased tariffs would adversely affect these industries".

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The Chinese trade surplus with the USA hit a record number in June as its exports grew at a solid pace, something that could possibly make a trade dispute with Washington, D.C., that much worse.

Earlier this month the United States and China slapped tariffs on $34 billion of each other's imports in an escalating trade tussle that has roiled financial markets. By imposing huge tariffs and being on the receiving end of retaliation from China and India, it is leading to a situation where global economic markets may break down. That prompted an immediate response from Beijing, which slapped tariffs on $34 billion of US goods.

"These tariffs appear to breach each WTO member's commitments under the WTO Agreement". Opponents of the new trade restrictions lined up to vent as the Commerce Department held a hearing on whether auto imports pose a threat to USA national security.

Mei Xinyu, a researcher affiliated with China's Ministry of Commerce, agreed with the suggestions, saying China had to improve its economic ties with the European Union and Japan and use the trade war as a "pressure test" to spot economic vulnerabilities. Commerce is conducting the probe under Section 232 of the 1962 Trade Expansion Act, which gives the president the power to impose tariffs on imports that threaten security.

Speaking at a news conference, he said: "If China wishes to open up, it can do so".

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However, the United States made various excuses and even used reasons as national security to create obstacles and restrictions on China's ordinary investment and business activities in the United States, she said.

The WTO has "not worked well, or not as well as it was meant to work when China was brought into the WTO in the year 2000", Treasury Undersecretary for International Affairs David Malpass said at an event in Washington on Monday.

"Relying more on fiscal policy to support domestic demand and defray the costs of the trade war is the wiser choice".

Members are barred from discriminating against each other in their trade practices, meaning China's exports were shielded from protectionist moves by other countries.

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