Chinese and US teams, led by Chinese Vice Premier Liu He and US Secretary of Commerce Wilbur Ross, held economic and trade consultations in Beijing, an official statement here carried by state-run Xinhua news agency said yesterday.

But at the same time, it warned that the outcome of the talks should be "based on the prerequisite that the two parties meet each other halfway and not engage in a trade war". "If the US introduces trade sanctions including tariff increases, all economic and trade achievements negotiated by the two parties so far will be void," said the Chinese statement. The US has not released its statement on the talks.