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"China certainly takes more from Australia than it exports to Australia," he said. "Just look at Australia's exports of agricultural products such as olive oil, honey, fruit, sea food, wine, cheese and meat. Australia can't produce enough to meet the demand in China.

"China does not want a trade war with the US," Wang Shouwen, vice-minister of commerce, said at a news conference on Wednesday afternoon. "But China is not afraid of one."

"But this 'two-speed' pattern will likely to continue, with both premiumization and flight to value," he said.

"China can adopt effective international practices while charting a path that befits its unique characteristics."

"China is such an innovative country, we need to invest more here and some of the innovations in China can later work in other countries. There will be more technology innovation going from East to West.