Policy paper indicates Beijing is equally prepared for a trade war and more negotiations

China is ready for a trade war if necessary, a government policy paper released by Beijing on Sunday said.

The paper blamed the United States for a breakdown in trade negotiations and accused the Trump administration's "America First" program and use of tariffs of hurting the global economy. In recent days China has threatened to bar the export of rare earth metals to the U.S. and create a blacklist of American companies and individuals, and launched in an investigation into FedEx after Chinese tech giant Huawei said the delivery company misdirected some of its packages. FedEx said the the incident was a mistake and is willing to cooperate with the investigation.

Despite the escalating tensions, though, the policy paper also suggested China remains willing to return to the negotiating table. "What truly matters is how to enhance mutual trust, promote cooperation, and manage differences," it said. China's Vice Commerce Secretary Wang Shouwen echoed that sentiment, telling reporters Beijing is willing to adopt a "cooperative approach" toward settling upon an agreement.

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