China is hopeful of resuming trades talks with the USA despite President Donald Trump’s protectionist rhetoric while hiking tariffs on Chinese imports.

China’s vice premier Liu He says the two countries have agreed to hold more trade talks in Beijing, voicing a measured optimism on reaching a deal.

But Mr Liu said there were “issues of principle” on which China would not back down.

The Chinese negotiator’s positive outlook on the escalating trade talks comes as Mr Trump ordered his trade chief to begin the process of imposing tariffs on all remaining imports from China.

“Negotiations have not broken down,” Mr Liu, China’s chief negotiator in the talks, said in Washington on Friday, according to state television on Saturday.

“Quite the opposite, I think small setbacks are normal and inevitable during the negotiations of both countries. Looking forward, we are still cautiously optimistic,” Mr Liu said.

But Mr Liu’s optimism was tempered by US treasury secretary Steven Mnuchin, who told CNBC on Friday there were no further talks with China planned “as of now”.

And on Saturday, Trump tweeted: “Such an easy way to avoid Tariffs? Make or produce your goods and products in the good old USA. It’s very simple!”

Such an easy way to avoid Tariffs? Make or produce your goods and products in the good old USA. It’s very simple!

— Donald J. Trump (@realDonaldTrump) May 11, 2019

The US escalated a tariff war with China on Friday by hiking levies on $US200 billion ($286 billion) worth of Chinese goods in the midst of last-ditch talks to rescue a trade deal.

Trump had delayed the tariffs as negotiations between Washington and Beijing were progressing.

On Friday, Trump issued orders for the tariff increase, saying China “broke the deal” by reneging on earlier commitments made during months of negotiations.

China strongly opposes the latest US tariff hike and as a nation has to respond to that, Mr Liu told a small group of Chinese reporters according to a video clip.

“Right now, both sides have reached mutual understanding in many things, but frankly speaking, there are also differences. We think these differences are significant issues of principle,” Mr Liu said.

“We absolutely cannot make concessions on such issues of principle.”

He added that talks would continue in Beijing, but gave no details.

Chinese vice premier Liu He and US trade representative Robert Lighthizer as they break from meetings on May 10. China is hopeful of resuming talks in Beijing. Photo: Getty Images

But underscoring a lack of progress in the talks, Trump ordered a further escalation of tariffs.

Trump’s move would subject about $US300 billion ($429 billion) worth of Chinese imports to punitive tariffs, US trade representative Robert Lighthizer said in a statement on Friday.

Lighthizer said a final decision has not been made on the new duties, which would come on top of an early Friday tariff rate increase on $US200 billion ($286 billion) worth of Chinese imports.