Trade war between the two biggest economies in the world intensifies as China retaliates to the latest round of American tariffs imposed on Chinese goods. On Monday, Beijing said that it will raise tariffs on US goods worth $60 billion starting 1 June.

In the previous week, US President Donald Trump increased tariffs on $200 billion worth of Chinese goods from 10 percent to 25 percent.

Despite the retaliation, China set the date as 1 June for the new tariffs so as to provide time for a resolution between the countries.

Trump said that he will meet the Chinese President Xi Jinping at the G20 summit to be held in June in Japan and "maybe something will happen."

During a trip to Russia, Chinese government's top diplomat, State Councilor Wang Yi, said that the China-US talks were not a "one-way street" and had to be conducted on the basis of equality. "Both countries' negotiating teams have the ability and wisdom to resolve each other's reasonable demands, and in the end reach a mutually beneficial, win-win agreement," he said.

The trade disputes between these two countries are of concern to the world as it will affect their economic growth, which will inturn affect the global economic growth. While early signs of the worry over the spat have already been seen in the equity market indices around the world. An IMF report in April said that this could lead to job losses in China as well as the USA.

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