A trade war between the United States and China is highly unlikely, according to a senior Chinese government official.

Although there is a trade dispute between the two countries, they also share overlapping interests, said Li Xiangyang, the deputy director of the Institute of World Economics and Politics of the Chinese Academy of Social Sciences.

The US Government on Friday filed a complaint with the World Trade Organization in Geneva, alleging that China is providing companies with improper subsidies to help its companies compete in world markets.

US Trade Representative Susan Schwab said China's government support for steel, wood, information technology and other industries hurt American firms, and prevent them from competing fairly.

This is the fourth time that Washington has complained to the WTO about China's trade policies. The previous three related to China's auto parts import regulation, brown paper and semi-conductor sectors.

"There is no new or strong evidence that could prove China has launched improper trade policies," said Li. "We hope both sides can settle the dispute through consultation."

The US tried to team up with other powers, including Japan and the European Union, in filing a WTO complaint against China over its industrial subsidies before, but invitations were not accepted.

The US has asked to open a consultation process, which is the first stage of a dispute settlement procedure of the world trade body over China's industrial subsidies.

The consultation will usually last two months. If it fails, a WTO panel of experts will be formed to handle the dispute.

"The government should brace for the upcoming consultation with the US and figure out how to settle trade disputes under WTO multilateral regulations," said Jin Bosheng, an expert from the Chinese Academy of International Trade and Economic Cooperation.