China’s toolbox to turn the retaliatory screws in trade tensions with the United States
Beijing has various ways to hit back if frictions escalate but it has been careful so far to not react too quickly, observers say
China can choose from a toolbox of retaliatory options, including punitive duties, if a trade war breaks out between the world’s two biggest economies, sources and analysts said.
A source close to China’s Ministry of Commerce said Beijing would not shy away from confrontation if provoked.
“The retaliation list includes initiating more investigations into US companies operating in China, conducting probes more stringently and slapping punitive duties,” the source said.
The assessment comes as the United States ramps up rhetoric about what it says is China’s unfair trade practices and policies.
The administration of US President Donald Trump has branded China as a strategic rival and launched trade investigations into Chinese exports such as solar panels, steel and aluminium.
Trump approved tariffs of up to 30 per cent on Chinese solar panels late on Monday and could impose quotas and duties on other products, depending on the outcome of the investigations.