“China resolutely opposes the US and Taiwan to start trade talks under the new initiative,” the country’s Commerce Ministry said in a statement released on Thursday.

Further quotes

“China will take all necessary measures to firmly safeguard its sovereignty, security and development interests.”

“China still faces many challenges in foreign trade, as growth momentum of external demand slows.”

On the US bill to boost chips, China’s Commerce Ministry said, “some provisions restrict normal economic, trade and investment activities of relevant enterprises in China,” adding that “the bill distorts global supply chains of the semiconductor sector, china resolutely opposes it.”

“China will take forceful measures to safeguard its legitimate rights when necessary,” the Ministry said.

Market reaction

As US-Sino tensions escalate over Taiwan, the S&P 500 futures shed 0.25% on the day. Meanwhile, the AUD/USD pair nurses losses near 0.6920, down 0.17% so far.