China accuses US of 'naked economic terrorism'

China accused the United States of "naked economic terrorism" on Thursday as Beijing ramps up the rhetoric in their trade war.

The world's top two economies are at loggerheads as trade talks have apparently stalled, with US President Donald Trump hiking tariffs on USD200 billion in Chinese goods earlier this month and blacklisting telecoms giant Huawei.

"We are against the trade war, but we are not afraid of it," vice foreign minister Zhang Hanhui said at a press briefing to preview President Xi Jinping's trip to Russia next week.

"This premeditated instigation of a trade conflict is naked economic terrorism, economic chauvinism, and economic bullying," Zhang said, stressing that China opposes the systematic use of sanctions, tariffs and protectionism.

"There is no winner in a trade war," he warned.

China has hit back with its own tariff increase on USD60 billion in US products that will take effect Saturday, while state media has suggested that Beijing could stop exports of rare earths to the United States, depriving Washington of a key resource used to make hi-tech products.

Meanwhile, state media and officials have stepped up the rhetoric as the Communist Party digs in for what could be a long fight with the United States.

An anchor for the English-language state broadcaster China Global Television Network (CGTN) even held a rare debate on Thursday with a presenter from Fox Business Network to discuss the trade war after jousting on social media.

The debate between CGTN's Liu Xin and Fox Business's Trish Regan was civil, with the American journalist saying "I appreciate you being here" and the Chinese anchor inviting her to come to China, adding "I'll take you around".

But China's propaganda apparatus has hardened the tone.

The party's mouthpiece, The People's Daily, warned in an editorial on Wednesday that rare earths could be used as a counter-measure, adding that the US shouldn't "say we didn't warn you."