China has said it is considering imposing tariffs on $3bn worth of US products in retaliation to new tariffs announced by US President Donald Trump.
The list of products under consideration by China includes pork, wine, fruit and nuts and stainless steel pipes, among others.
At the same time, China has asked the US to avoid taking US-China trade relations to a "dangerous place".
Beijing said it hoped the US would pull back "from the brink" of a trade war.
On Thursday, the US announced plans to impose tariffs on up to $60bn (£42.5bn) on Chinese imports and limit the country's investment in the US.
The move was a response to years of alleged intellectual property theft by China.
On Friday, China's commerce ministry said it opposed the US action against Chinese imports.
The ministry said it had plans for a 25% tariff on US pork imports and recycled aluminium, and a 15% tariff on US steel pipes, fruit and wine.
It also said in a statement that while it did not want a trade war, it was not afraid to have one.
Beijing also has plans to pursue legal action through the World Trade Association on US tariffs announced last month against imported steel and aluminium products.
Markets in Asia fell on fears that the US and China were about to embark on a trade war.
The benchmark Nikkei 225 was down close to 4% in mid-morning trade, and markets in China were all in negative territory.