Beijing has made its decision. After days of warning of counter measures and urging Washington to enter negotiations and "meet China halfway", it has decided to hit back – or at least threaten to retaliate with its own tariffs.

China's markets return from a week's break on Wednesday to a fresh trade dispute with the United States and ructions in the global artificial intelligence sector. Investors said they are watching for what Beijing would do to bolster confidence.

Trump’s 10% tariffs on China take effect, triggering retaliation Beijing imposes some counter levies, takes US to WTO Google, Tommy Hilfiger, Calvin Klein owner among China targets China tariffs come even as Trump delays duties on Canada,