The US president Donald Trump's threat to introduce additional import duties on Chinese goods got China to go out and say that they "are not afraid of" a trade war with the country, according to CNBC.
The Chinese stock exchanges have reacted negatively to the statements and Shenzhen's composite index is down 1.5 percent on Monday and Shanghai's 0.8 percent.
In Hong Kong, the situation looks even bleaker with a minus of 2.2 percent.
Also, the South Korean Kospi is falling by 1.0 percent.
The Japanese stock exchanges are closed for the holiday.
