Trump's trade 'extortion' won't work: Chinese state media

The paper's vitriol follows Trump's comments on Twitter from Saturday in which he boasted that his strategy of placing steep tariffs on Chinese imports was "working far better than anyone ever anticipated", and that Beijing was now talking to the United States about trade.

Trump cited losses in China's stock market as he predicted the U.S. market could "go up dramatically" once trade deals were renegotiated.

China's stocks were lower on Monday as Beijing's latest tariff threats escalated the tit-for-tat Sino-U.S. trade war, though the central bank's efforts to shore up the tumbling yuan helped to stabilise the currency.

But a flurry of articles in Chinese state media emphasised the resilience of China's economy and downplayed concerns about the impact of the Sino-U.S. trade war.

"Market participants foresee a relatively stable Chinese currency in the near term, without fear of impacts from the U.S.-China trade dispute. They expect solid economic growth momentum amid policy fine-tuning," an article in the official English-language China Daily newspaper said, citing Chinese economists.

On Friday, the People's Bank of China said it would require banks to keep reserves equivalent to 20 percent of their clients' foreign exchange forwards positions from Monday, in a move to stabilise the yuan.

"Leading China's economy on a stable and far-reaching path, we have confidence and determination," another commentary in the main edition of the People's Daily said.

Trump has threatened tariffs on over $500 billion in Chinese goods, covering virtually all U.S. imports from the Asian giant, demanding that Beijing make fundamental changes to its policies on intellectual property protection, technology transfers and subsidies for high technology industries.

The nationalist Global Times, responding in an editorial late on Sunday to White House economic adviser Larry Kudlow's remarks that China should not underestimate Trump's resolve, said China did not fear "sacrificing short-term interests".

"China has time to fight to the end. Time will prove that the U.S. eventually makes a fool of itself," the Global Times said.