China Hopeful over Trade Pact with US, but Condemns Military Action

China has assured on Monday it is still waiting for a trade agreement with the United States despite Donald Trump's tariff threats, but warned it to stop military provocations in its waters because it will undermine regional peace and stability.

Geng Shuang, Foreign Ministry spokesman, said at a press conference his government is analyzing the announcement made Sunday by US President Donald Trump who threatened to raise tariffs, and is preparing the trip of the negotiating team this week to Washington for another round-table of bilateral consultations.

Since Friday, according to Trump, the tariffs imposed on Chinese goods valued at 200 billion dollars will climb from 10 to 25 percent, because he considers very slow the Washington - Beijing negotiations on the trade agreement.

He also threatened to apply early tariffs of 25 percent to Chinese products for 325 billion dollars that have so far remained tax-free.

However, the spokesman reiterated Beijing's rejection and demand of an end to the entry of US military vessels into the South China Sea, describing them as provocative acts which violate sovereignty, peace and security in that territory.

He even emphasized that China will take the necessary measures to safeguard its territorial integrity against the continuation of these illegal operations.

Two other warships entered Chinese waters on Monday without Beijing's permission.

The potential increase in hostilities and the uncertainty over a stalemate in trade talks put an end on Monday to optimism and knocked down Asian stock markets as the situation raises fears of an economic recession.