President Donald Trump’s plan to slash business taxes reportedly is stoking fears in China of a “tax war” that will prompt companies to pull out of China.

The Trump administration has proposed slashing corporate taxes from 35 percent to 15 percent and provide a one-time repatriation rate for international earnings parked overseas with an estimate value of more than $2.6 trillion.

China also has tried for years to reduce business costs. “Now, Chinese officials and executives worry that the tax proposal Mr. Trump announced last week will set back China’s global competitiveness and spur companies to invest in America instead of China,” The Wall Street Journal reported.

In anticipation of the U.S. tax move, the State Council, China’s cabinet, said in April that the government will reduce corporate taxes by over $55 billion to “improve business conditions,” the Journal reported.

The Communist Party’s newspaper, People’s Daily, warned on Friday that