AsianFin -- China is fully confident in its ability to manage trade issues with the United States, Vice Foreign Minister Hua Chunying said on Friday, just one day before U.S. and Chinese officials are set to meet in Switzerland to discuss the tariffs imposed on each other.

"We have no fear," Hua told reporters at a middle school in rural southwestern China, emphasizing that the U.S. administration's trade policy is unsustainable.

The upcoming weekend talks between senior U.S. and Chinese economic and trade officials are widely seen as a key step toward resolving a trade conflict that has affected the global economy. President Donald Trump indicated on Thursday that U.S. tariffs on China, which currently stand at 145%, are likely to be reduced.

"We have full confidence," Hua said during a trip organized by Beijing to Malipo County, where she highlighted China's efforts to strengthen rural economies.

"We do not seek any conflict with any country. But we must face the reality. As you can see, people have complete confidence in our ability to overcome all challenges."