China filed a new complaint with the World Trade Organization on Wednesday after earlier telling the world trade body that U.S. tariffs on Beijing are "reckless" and threaten to further destabilise global trade.

China trade war escalated as China condemned the US's new tariffs, calling them a violation of WTO rules. China announced retaliatory tariffs, leading to a sharp drop in US stock index futures.

The World Trade Organization chief said Tuesday the US-China tariff war could reduce trade in goods between the two economic giants by 80 percent.