Chinese President Xi Jinping said in a statement on Friday that the country is willing to work out the Phase One trade deal, initiated to put an end to the trade war, with the United States. However, he also said that Beijing is not afraid to take retaliatory measures if required. Economists have repeatedly warned that the lengthening of the trade war, which has been going on for more than a year now, will have an increasingly detrimental impact on the global economy by affecting investment, business confidence and supply chains. Xi Jinping told representatives of an international forum that the country wants to work out the initial trade pact with the US, based on equality and mutual respect. He added that the trade war was not initiated by his country and that the country has been working to prevent further trade wars. Financial markets around the globe dropped earlier this week as fresh doubts were raised about the prospects of the trade talks between the two largest economies in the world. This comes at a time when the US President is expected to sign two bills that support protestors in Hong Kong, a city that is ruled by China. Trade experts believe that the conclusion of the Phase One trade deal between the two nations may be pushed to next year as China demands rollback of tariffs that were imposed during the trade war. On the other hand, the US Administration has its own set of demands from China as compensation for the removal of tariffs of Chinese imports to the country. Primavera Capital Group's founder, Fred Hu, said that the more the talks are pushed ahead, the more things will be affected. He added the protests in Hong Kong may also come in the crossfire of the trade talks between the two sides.