China's priorities right now are to resolve its trade dispute with the U.S. and settle the civil unrest in Hong Kong, said Becky Liu, head of China macro strategy at Standard Chartered Bank.

"At this stage, we feel that China does want to diffuse some of the tensions ... with the U.S. and obviously want to calm down in Hong Kong as well," Liu told CNBC's "Street Signs" on Friday.

The People's Republic of China will be celebrating the 70th anniversary of the founding on Oct. 1, when President Xi Jinping will oversee a military parade in Beijing.

"The National Day is an important day but in the context of this big trade negotiation with the U.S., even including the Hong Kong situation, the face issue is not as important as many people have thought," said Liu said, referring to the Asian mentality of "saving face" — the idea of avoiding public humiliation, or appearing like one has lost out.

Saving face may be important to the Chinese government ahead of the important national anniversary, but that is not Beijing's priority right now.

"We feel clearly the Chinese authorities would like to at least contain the pace of escalation of conflict with the U.S.," Standard Chartered's Liu said.