There are no winners in trade wars,” Kallas said on the sidelines of a G7 meeting in Canada. “Who is laughing on the side or looking at the side is China. It’s really benefiting from the U.S. having a trade war with Europe.

China has ordered banks and other financial institutions to encourage more consumer financing and use of credit cards as part of a campaign to get people to spend more. The order Friday from the country’s financial regulator is part of the ruling Communist Party's latest push to build more confidence among consumers who are opting to save rather than spend,

Worries over jobs and the burden of healthcare and education have left many in China unwilling to spend much, hobbling a major driver of business activity.

China's financial regulator urged institutions to boost support for consumption, promising in a statement on Friday to properly relax consumer credit quotas and loan terms as it offers long-term backing to make available large sums.