"Can Destroy China But...": What Trump said On Relationship With Beijing

US President Donald Trump has claimed that Washington holds "incredible cards" against Beijing and suggested that if he chose to use them, he could "destroy" the world's second-largest economy. However, the American stressed that the United States will maintain a "great relationship" with China, the second-largest global economy. The statement came a day ahead of the deadline for Trump's 50 per cent tariff threat to India.

"We are going to have a great relationship with China...They have some cards. We have incredible cards, but I don't want to play those cards. If I play those cards, that would destroy China. I am not going to play those cards," Trump said, speaking at the Oval Office ahead of a meeting with South Korean President Lee Jae Myung.

The US leader did not clarify whether he was referring to economic, political, or strategic tools.

He then talked about his recent conversation with Chinese President Xi Jinping and said he was considering a trip to Beijing. 

"At some point, probably during this year or shortly thereafter, we'll go to China," Trump said, saying his Chinese counterpart had extended an invitation.

Trump's tariffs have threatened to deteriorate US-China relations over the past year, with Washington raising duties on Chinese imports as high as 145 per cent in April. Tensions also rose over China's rare earths policy, with Trump threatening that if Beijing does not supply magnets to the US, Washington could impose a "200 per cent tariff or something."

But later, Washington and Beijing reached a trade truce. Even as Trump's punitive tariffs again rattled the global economy earlier this month, the two nations on August 12 decided to extend their trade truce for another 90 days, giving negotiators more time to find common ground. 

Currently, most Chinese goods face a 30 per cent levy, while Beijing extracts a 10 per cent tariff on US imports.