The U.S. tariffs have affected China's economic growth — albeit modestly — and their impact will become even more pronounced if the trade frictions persist, Liu said.
Liu spent more than two decades in the Guangdong provincial government, taking on various roles including the head of its finance bureau. He became the vice governor of the export-oriented southern province in 2010.
Liu said he is very concerned about the Chinese jobs that could be lost.
"From my perspective, I'd pay more attention to the impact that the China-U.S. trade frictions has on jobs in China. After all, some firms will be affected, exports will be reduced and production will be cut," he said.
China's urban survey-based jobless rate rose to 5.1 percent from 4.8 percent in June. The government aims to keep the rate below 5.5 percent this year.
China plans to increase its fiscal spending to support workers or jobless hurt as higher tariffs kick in.
"We will make adequate preparations in terms of fiscal policy, and help unemployed workers find new jobs and ensure their basic social security," Liu said.
The expenditure will not cause China to overshoot its 2018 budget deficit target of 2.6 percent of gross domestic product, he said.
Liu is optimistic about government revenues this year, saying they might even exceed expectations.
Beijing is expediting plans to invest billions of dollars in infrastructure projects as its economy shows signs of cooling further.
Earlier this month, the finance ministry told local governments to speed up issuance of special bonds used to fund infrastructure projects.
Local governments are allowed to issue 1.35 trillion yuan ($196 billion) of special bonds this year. In the first half, more than 300 billion yuan of them were issued, a speed which the finance ministry called "slow".
Issuance could pickup and exceed 1 trillion yuan in the first three quarters of the year, Liu said.
There are three things China needs to do well - lowering taxes and cutting fees, preserving the intensity of its fiscal spending so that its effect can be better felt, and supporting the real economy and lightening the burdens of companies, he said.
The cuts in taxes and fees would be more than 1.1 trillion yuan this year, beating government forecasts, Liu said.
On May 1, China cut the value-added tax in the manufacturing, transportation, construction, telecommunication and agricultural sectors.
But all that does not mean China will unleash massive stimulus or go back on its campaign to reduce leverage in the economy.
"When we're talking about a more proactive fiscal policy, we aren't talking about massive stimulus, nor do we want to incur financial risks, let alone getting the government to take care of everything," Liu said.