Donald Trump's announcement came amidst escalating confrontation between the US and China over trade, the origins of the Covid-19, security crackdown in Hong Kong and the communist giant's military moves in the South China Sea.

Despite the limitations, the sanctions amounts to the first concrete step by a government to penalize China over the treatment of Uighur Muslims since the existence of the mass internment camps became widely known in recent years.

Chinese President has specifically mentioned the issue of territorial protection when he asked the Army to 'safeguard the overall strategic stability of the country'.

China's war cry comes amid straining relations with India, rising tensions with the US, belligerent speeches by Chinese politicians in reference with Taiwan, and renewed protests in Hong Kong.

The US and China had signed a deal in January to end their 22-month-long trade war during which the two countries slapped tit-for-tat tariff hikes on products worth nearly half a trillion USD.

'If China, US reach a phase-one deal, both sides should roll back existing additional tariffs in the same proportion simultaneously,' China said.

President Donald Trump has said he plans to impose 10 per cent duties on an additional USD 300 billion of Chinese imports.

Eminent economist Arvind Panagariya said as the large multinationals 'are coming out' of China, 'it is an opportune time for India to do whatever it will take to bring these multinationals to the Indian shores'.

China last week defended its repeated attempts to block the listing of the Jaish-e-Mohammad chief as a global terrorist.

The spokesperson in the American embassy said Washington will continue to work with the UN sanctions committee to ensure that the designation list is updated and accurate.