Donald Trump has repeatedly urged Xi Jinping to call him for discussions about a potential trade deal. But any off-ramp to the economic tensions will likely run through Vice Premier He Lifeng, who is Xi's Sino-American trade tsar.

Trump has held up tariffs as a negotiating tool with China and claimed talks are ongoing, but Beijing says so far there have not been any negotiations.

China can expand domestic demand through various policies including rebates for swapping old vehicles, appliances and factory equipment for new ones, Zhao said, forecasting that demand for equipment upgrades will exceed 5 trillion yuan ($34.8 billion) a year.