The Chinese government on Tuesday said Beijing and Washington have agreed to keep talking amid an escalating trade war.

SOUNDBITE) (Mandarin) CHINESE FOREIGN MINISTRY SPOKESMAN GENG SHUANG, SAYING: "My understanding is that China and the United States have agreed to continue pursuing relevant discussions." At a dinner Monday night U.S. President Donald Trump touted the efforts of the Treasury Secretary to resolve the dispute (SOUNDBITE) (English) U.S. PRESIDENT DONALD TRUMP, SAYING (MONDAY): "I also want to thank Secretary Steven Mnuchin, Steve.

Steve just got back from China.

We'll let you know in about three or four weeks whether or not it was successful.

You never really know, right?

But I have a feeling it is going to be very successful." The optimistic tone comes a day after both sides ramped up trade-war rhetoric to a level that sank global financial markets.

China announced retaliatory tariffs against U.S. imports, and the U.S. Trade Representative's office said it would consider on new duties on a $300 billion worth of Chinese goods.

That threat would hike prices on nearly everything Americans purchase from China, from clothes to electronics.

The U.S. blamed China for backtracking on earlier commitments to change its own laws as part of a trade deal.

A Chinese government spokesperson on Tuesday said Beijing will not be bullied.

(SOUNDBITE) (Mandarin) CHINESE FOREIGN MINISTRY SPOKESMAN GENG SHUANG, SAYING: "We hope that the U.S. side does not misjudge the situation and not underestimate China's determination and will to safeguard its interests." Trump and Chinese Premier Xi Jinping will meet at the G20 summit in Japan in June.