China urges dialogue with US to resolve trade disputes after Trump's 104% tariff

US-China trade war

China has urged for dialogue with US to resolve the rising trade disputes between the two countries. This comes as global markets faced strong volatility after US imposed 104 percent tariff on the country, after China retaliated with 34 percent tariff to Donald Trump's reciprocal taxes.

After trading nearly 2 percent lower earlier in the day, Futures related to the major US indices recovered significantly in the afternoon to trade with marginal gains after China released the White Paper on its stance. At around 1.15 pm IST, S&P 500 Futures were up nearly 0.1 percent, while Dow Jones Futures were trading 0.02 percent higher, after recovering over 900 points from day's low. The tech-heavy Nasdaq Futures meanwhile were up 0.41 percent to trade at 17,318.75, after recovering over 500 points.

However, the Futures again plummeted later to trade in the red. The S&P 500 Futures were down 0.46 percent, while Dow Jones Futures dropped 0.85 percent, as at 4.25 pm IST. Nasdaq Futures meanwhile declined 0.03 percent. Notably, the US market opens at around 7 pm IST.

China's state-run agency Xinhua on April 9 released the White Paper published by the country's State Council Information Office to elaborate its stance on the ongoing trade tensions with US. China has taken "forceful" countermeasures to defend its national interests, but remains committed to resolving disputes through dialogue and consultation with US, the report quoted the White Paper as saying.

It was "natural" for the two countries to have trade frictions, the White Paper further read.

"If the U.S. genuinely wants to resolve the problem through dialogue and negotiation, it should show an attitude of equality, respect and mutual benefit," CNBC cited China's Foreign Ministry Spokesperson Lin Jian as saying at a press conference.

US President Donald Trump on April 2 had announced a slew of reciprocal tariffs on several nations. China immediately hit back with a 34 percent tariff on US imports. US further retaliated by imposing a whopping 104 percent tariff on China.

The escalating global trade tensions triggered a global market rout, as investors remained concerned over the US-China trade war and possible recession.

Notably, US markets have seen significant volatility in the past few sessions. After increasing nearly 4 percent during the day, Wall Street’s benchmark indices strongly tumbled to close in the deep red on April 8. Nasdaq closed over 2 percent lower at 15,267.91, while S&P 500 closed below 5,000-mark for the first time in almost a year.