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China's Ministry of Finance quickly countered on Saturday with its own 25 percent tariff on 659 US products worth up to billion that include items such as soybeans, beef, whiskey, electric cars, chemicals and energy products.

China will strengthen its protection and management of intellectual property, accelerate the commercialization process, and help improve global IP protection practices and standards, officials said on Tuesday.

China will intensify punishment for those who break the rules, offer more incentives to those who obey the rules, and build new regulation mechanism core with credit, said Lian Weiliang, vice-chairman of the National Development and Reform Commission.

China's Foreign Ministry spokesman Lu Kang said on Tuesday that Beijing hopes both New Delhi and Islamabad "can exercise restraint and adopt actions that will help stabilize the situation in the region and improve mutual relations".

China's FTZs are a way of testing new policies, including interest rate liberalization and fewer investment restrictions, to better integrate the economy with international practices.