BEIJING (Reuters) - The United States has violated international trade rules with an inquiry into intellectual property and China is ready to defend its interests, Vice Premier Liu He told U.S. Treasury Secretary Steven Mnuchin, state media said on Saturday.

FILE PHOTO: Containers are seen at the Yangshan Deep Water Port, part of the Shanghai Free Trade Zone, in Shanghai, China February 13, 2017. REUTERS/Aly Song

U.S. President Donald Trump plans to impose tariffs on up to $60 billion in Chinese goods for what he calls misappropriation of U.S. intellectual property under Section 301 of the 1974 U.S. Trade Act.

The escalating tension sent shivers through financial markets as investors foresaw dire consequences for the global economy if trade barriers start going up.

In a telephone call with Mnuchin, Liu, a Harvard-trained economist who advises President Xi Jinping, said China still hoped both sides would remain “rational” and jointly work together to keep trade relations stable, the official Xinhua news agency said.

The Section 301 investigation report “violates international trade rules and is beneficial to neither Chinese interests, U.S. interests nor global interests”, Xinhua cited Liu as saying.

“China has already prepared, and has the strength, to defend its national interests,” Liu said, adding that China hopes both sides can work hard to protect the broad picture of generally stable Sino-U.S. trade and business relations.

Both sides agreed to continue to communicate on the matter, the report added, without providing further details.

FILE PHOTO: Chinese Vice Premier Liu He attends the news conference following the closing session of the National People's Congress (NPC), at the Great Hall of the People in Beijing, China March 20, 2018. REUTERS/Jason Lee

China showed readiness to retaliate by declaring plans to levy additional duties on up to $3 billion of U.S. imports, including fruit and wine, in response to U.S. import tariffs on steel and aluminum that were due to take effect on Friday.

The state-run Global Times said China was only just beginning to look at means to retaliate, following the announcement of its initial response.

FILE PHOTO: U.S. President Donald Trump holds a signed memorandum on intellectual property tariffs on high-tech goods from China, at the White House in Washington, U.S. March 22, 2018. REUTERS/Jonathan Ernst

“We believe it is only part of China’s countermeasures, and soybeans and other U.S. farm products will be targeted,” the widely-read tabloid said in a Saturday editorial.

“It does not look like just a trade war, but rather the U.S. is trying to bully China and the rest of the world in order to make China concede economic resources and development opportunities to the U.S. and make the U.S. forever big and strong.”

China has made great efforts to be constructive to try and deal with the trade frictions in the face of U.S. provocation, the ruling Communist Party’s official People’s Daily wrote in a commentary.

“But Washington was determined to choose rashness and

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