Trade negotiations between the United States and China struck when President Donald Trump on Sunday threatened to raise tariffs on Chinese goods – just as a deal was said to be "possible" before Friday.
While Chinese Deputy Prime Minister Liu He is still set to join a delegation of Chinese negotiators this week in Washington. The latest developments between the world's largest economies have revived concerns about global growth prospects.
However, according to the vice president of a Beijing-based tank tank, there is still room for China to "maneuver on the headwinds created by the US trade war" ̵
"The trade war really has a negative impact on the Chinese economy – it does not deny it," Victor Gao of the Center for China and Globalization told CNBC's Squawk Box on Tuesday.
"How much that effect is and whether China as a whole can come up with ways to overcome the consequence, that's another matter," he added. "China still thrives at 6% to 6.5% GDP growth, which is more than double the GDP growth in the United States."
China President Xi Jinping and US President Donald Trump attend a Welcome Ceremony at the People's Great Hall in Beijing on November 9, 2017.
Nicolas Asfouri | AFP | Getty Images
Gao still said, there will be in Beijing and Washington's service to meet a deal rather than later.
"The Customs War is not in China's interest, but neither is it in US interest. The sooner the two governments set the trade war behind us, the better," he told CNBC.
The think tank said that both governments should "calmly calm" and he warned that bluffing was unlikely to reap dividends in the ongoing negotiations.
"China needs an agreement with the United States, and I think the United States also needs an agreement with China. Uncertainty, unpredictability and the prospect of greater concern will be a killer for both countries."