(From BBC News)
The US plans to impose tariffs on up to $60bn in Chinese goods and limit the country’s investment in the US in retaliation for years of alleged intellectual property theft.
The White House said the actions were necessary to counter unfair competition from China’s state-led economy.
It said years of talks had failed to produce change. China said it was ready to retaliate with “necessary measures”.
The latest sanctions have raised fears of a global trade war.
US stock markets sank on Thursday, as investors responded to the announcement.