Trade conflicts should be solved through negotiations as a "lose-lose" trade war will cause more harm than good for all participants, according to the managing director of the Boston Consulting Group Greater China.

"The trade war will create a 'lose-lose' scenario. Current steps taken by the United States have already triggered worries among investors, which can be reflected by recent sharp falls in the stock market," said Liao Tianshu, managing director of the Boston Consulting Group Greater China, during the China Development Forum on Saturday.

"It (the trade war) will add more uncertainties for enterprises involved, in the US, China and in other countries. Companies might need to take some immediate steps to react," she said, citing a recent report by the company.

The report suggested companies should assess their exposure to rising steel and aluminum prices in the US and the impact on their cost structures, and they should also consider whether or not protectionist measures may spread to other sectors, such as automobiles and electronics.

She said triggering a trade war is not an ideal solution if the US only hopes to reduce the trade deficit.

"Trade frictions can be solved if people are willing to sit down and figure out solutions," she said.