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Beijing and Washington have been at loggerheads over the disputed South China Sea as Chinese military commanders admitted war is now a "practical reality".

New US President Donald Trump has repeatedly slammed China for "raping" the US as the talked up cutting trade as he squared up to the Asia-Pacific powerhouse.

But the head of one of China's biggest businesses has warned "if trade stops, war starts" as the world's biggest superpowers come to blows.

Meanwhile, the Communist Party issued its first statement since Trump's election and warned a war between the US and China would be a "world disaster".

(Image: GETTY)

Jack Ma, chief executive of online retailer Alibaba, warned about the looming threat while speaking at the launch of his company's Australia and New Zealand HQ in Melbourne.

The billionaire spoke about the risks of war as Trump promised to put "America first" and targeted China during his road to the White House.

Ma said: "Everybody is concerned about trade wars. If trade stops, war starts.

"The only thing you can do is get involved and actively prove that trade helps people to communicate."

(Image: GETTY) (Image: GETTY)

China's ruling Communist Party weighed in on the looming risk of war in a column in its official mouthpiece the People's Daily.

“Were the United States and China to wage war on one another, the whole world would divide itself," it said.

It added "wise men should seek common ground" in the article printed under the name "Voice of China".

Experts have warned one "miscalculation" by either China or the US could spark a devastating war between the two superpowers.

(Image: DS)

War tensions have reached a new highs as some of Trump’s top aides have talked up war with China.

Steve Bannon, White House chief strategist, said; "We’re going to war in the South China Sea in five to 10 years.

"There’s no doubt about that. They’re taking their sandbars and making basically stationary aircraft carriers and putting missiles on those.

"They come here to the US in front of our face – and you understand how important face is – and say it’s an ancient territorial sea.”

China has also deployed its aircraft carrier, and announced a second will be stationed in the South China Sea.

US forces have placed nuclear-capable bombers in their bases in Guam, fighter jets and marines in Japan, and missile systems in South Korea.

A message released by the People’s Liberation Army of China said: “Statements like ‘a war within the President's term' or 'war breaking out tonight' are not just slogans, they are becoming a practical reality