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"China is well prepared for further actions taken by the US and will resolutely fight back if the US insists on unilateralism," Gao added.

"Carmakers are encouraged to make the most of international technologies, capital and human resources to raise the level of China's new energy vehicle sector," said the National Development and Reform Commission. The comments were made in a document released last month in conjunction with the Ministry of Industry and Information Technology.

"But we must try to look for a solution in a peaceful manner and with mutual respect instead of escalation," she said.

"By both measures, China has done extremely well and is still doing well," said Keidel, former senior economist in the World Bank's Beijing office.

"But there is still a question of whether such regulations can be successfully implemented, especially in some privately owned companies," said Professor Qiu Zeqi, director of the Center for Sociological Research and Development Studies of Peking University.