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"Furthermore algorithms used for encrypting information transmitted on 5G networks are designed so that even quantum computers of the future won't be able to crack them," he added.

"GAC's new energy cars have been able to compete with those produced by big brands from Japan and South Korea, both in terms of quality and technology," he said.

"Governments need to steer clear of protectionism in all its forms, and history shows that import restrictions hurt everyone, especially poorer consumers," Lagarde said in a prepared speech released to the press.

"Growing trade disputes have placed farmers and ranchers in a precarious position. We have bills to pay and debts we must settle, and cannot afford to lose any market, much less one as important as China's. We urge the United States and China to return to negotiations and produce an agreement that serves the interests of the world's two largest economies." Zippy Durall, president of the group said in the statement.

"Given the large trade between the US and China in hides, skins and leather products, a tariff increase on the industry would negatively impact industries in both countries equally," he said.