U.S. President Donald Trump will meet Japanese Prime Minister Shigeru Ishiba for the first time on Friday as two allies wary of China's rise work to boost business and security ties while an escalating trade war threatens to rupture the global economy.

Beijing has made its decision. After days of warning of counter measures and urging Washington to enter negotiations and "meet China halfway", it has decided to hit back – or at least threaten to retaliate with its own tariffs.

Once again, China and the United States are on a collision course over trade. Beijing has fired back at Washington with fresh tariffs, escalating fears of another full-blown trade war. Three days after US President Donald Trump announced 10% tariff hike on Chinese imports,

Companies across the country are bleeding cash as they struggle with overcapacity and weak spending in a slumping economy, leaving them vulnerable to tariffs.