Worries that the United States and China were digging in for a longer, costlier trade war weighed on financial markets on Monday as Beijing accused Washington of harboring “extravagant expectations” for a deal to end their dispute.

Classified briefings show increasingly hawkish stance as trade war continues.

Chinese State Councilor and Foreign Minister Wang Yi urged the United States not to go too far in its damaging moves against Chinese interests in a phone conversation Saturday with U.S. Secretary of State Mike Pompeo.

The U.S. military said one of its warships sailed near the disputed Scarborough Shoal claimed by China in the South China Sea on Sunday, a move likely to anger Beijing at a time of tense ties between the world’s two biggest economies.

Alphabet Inc’s Google has suspended business with Huawei that requires the transfer of hardware, software and technical services except those publicly available via open source licensing, a source familiar with the matter told Reuters on Sunday, in a blow to the Chinese technology company that the U.S. government has sought to blacklist around the world.

Over the last month the U.S.-China trade war has boosted the risk of a U.S. recession, say a strong majority of economists polled by Reuters, who now put the chances of that happening in the next two years at 40%.

China sees little "sincerity" in Trump's recent approach.

U.S. Secretary of State Mike Pompeo met with Hong Kong pro-democracy leader Martin Lee on Thursday, the State Department said, as Hong Kong activists seek to derail a proposed extradition law pushed by Beijing.

Presidents of Palau, Micronesia and Marshall Islands to meet with Trump next week

Executive order widely believed to be aimed at China’s Huawei and ZTE