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China has been closing down its steel mills, partly to cut overcapacity but more importantly to fight air pollution. Steel mills are largely responsible for the severe air pollution in Hebei province, next to Beijing.

China has also been phasing out unclean and inefficient coal-fired boilers, setting up new monitoring stations for air, water and soil protection, and working to build a clean, low-carbon, safe and efficient modern energy system.

China has been able to maintain high economic growth for a very long period through this process of continuous institutional innovation. This gradual process of continuous reform while institutions are built has proven much more successful than the "shock therapy" implemented by Russia, Poland and others in the 1990s.

China does not intend to become embroiled in a trade war with United States, and the two sides have agreed to continue communicating on trade issues in the near future, which in turn will create conditions for further cooperation, senior Chinese officials said on Sunday.

China has imposed a 25 percent tariff on in-shell hazelnuts from the US as well.