China downplays the threat of a trade war

Shanghai, September 15 (Gasgoo.com) China has said it does not think its trade disputes with the US will hurt ties between the two countries, playing down the threat of a trade war, reports BBC news.

"We don't want to see anything bad happen to bilateral relations," the Chinese commerce ministry said.

President Barack Obama also downplayed the possibility that his imposition of tariffs on imported tires from China would spark a cycle of retaliation.

"We're not going to see a trade war," Obama said yesterday in an interview with Bloomberg News. "There are some tensions around this, no doubt about it. But my message is very simple: We have rules on the books."

China is demanding talks with the U.S. and has filed a complaint to the World Trade Organization after Barack Obama made a decision to tire tariff last Friday.

Under WTO rules, Beijing and Washington will try to solve the dispute over the next 60 days through negotiations. If that fails, China can ask for a WTO panel to make a ruling on tire imports.