Each side has now imposed charges on half of the other side's annual exports and Washington has threatened to slap tariffs on all Chinese sales to the U.S.
Speaking weeks before a highly anticipated face-to-face meeting between US President Donald Trump and his Chinese counterpart Xi Jinping at the G20 summit in Argentina, Cui Tiankai said the US-China relationship, which will mark its 40th anniversary next January, "has made great strides, while also it has had its share of setbacks".
US-China Business Council senior vice president Erin Ennis said that it would not be a surprise to see Trump move towards announcing more tariffs, given his repeated threats to do so.
ENERGY: Benchmark U.S. crude added 6 cents to $67.10 per barrel in electronic trading on the New York Mercantile Exchange. The Shanghai Composite index rebounded 1.2 percent to 2,573.33 and South Korea's Kospi picked up 1.3 percent to 2,021.82. Facebook stock was also down 2 percent, Amazon fell 6 percent, Netflix dropped 5 percent and Google's parent company Alphabet fell 4.5 percent.
Stocks in Asia were poised for a muted start Thursday after global equities rallied on the final two days of what was still their worst month in more than six years.
Oil heads for third weekly decline, but Iran sanctions limit losses
In oil, WTI has fallen almost 10 percent so far this month, while Brent is down almost 9 percent. The global benchmark has lost nearly $10 a barrel since hitting a high of $86.74 on October 3.
Broad gains in the US equity market turned global stocks higher on Tuesday after President Donald Trump said a "great deal" could be struck with China that would relieve fears of a growing trade war between the world's two largest economies. In May, Chinese negotiators thought they had reached an agreement with the US for China to buy $100 billion worth of additional US goods, a deal which US Treasury Secretary Steven Mnuchin said had put the trade war "on hold".
The effects of higher tariffs could be especially severe for technology companies, which make many of their products in China, and for industrial companies, which are already paying higher prices for metals. The euro rose to $1.1377 from $1.1372. After Cooper Tire & Rubber reported a bigger third-quarter profit than analysts expected, its stock surged 21.4% to $30.89. Italy's FTSE MIB index rose 1.9% after Standard & Poor's did not downgrade its credit rating.
Brazil's Bovespa rose in morning trading after far-right politician Jair Bolsonaro was elected president, but it later ended down 2.2%. Stocks climbed earlier this month after Bolsonaro led the previous round of voting, as investors preferred him to leftist parties.
Brent crude futures fell $1.34 to $76.00 a barrel, a 1.7-per-cent drop. The yen edged lower after the Bank of Japan left its monetary stimulus unchanged and kept its 10-year bond yield target at about zero percent. Silver fell 1.8 percent to $14.44 an ounce.
CURRENCIES: The dollar strengthened to 112.95 yen from 112.37 yen late Monday.