China's leaders have shrugged off the potential impact from U.S. President Donald Trump's trade war, saying they have the tools needed to protect jobs and limit damage from higher tariffs on Chinese exports.

When the leaders of some of the world's largest companies flocked to Beijing for a business forum last month, their main purpose was a coveted meeting with Chinese leader Xi Jinping.

Companies are looking for alternative suppliers. The situation could worsen if tariffs remain in place. The US economy may face a recession.