US and China could exchange sanctions on telecom, chips and agriculture in trade war skirmish: analysts
US intellectual property probe could bring sanctions against Chinese telecom and semiconductors, prompting retaliation aimed at US agriculture sector
China could take aim at the United States’ agriculture sector if a US investigation into China’s intellectual property practices results in sanctions against Chinese telecom and semiconductor exports, analysts have warned.
Derek Scissors, a trade specialist at the American Enterprise Institute in Washington, said the US’ ongoing Section 301 investigation could justify sweeping sanctions against China’s telecom and semiconductor products, including consumer electronics.
Scissors said a US president could unilaterally impose sanctions or quotas, including a quota of zero, against imports into the United States for six months.
“If the US were to take such broad action, I suspect Chinese retaliation would be aimed at American agriculture,” he said.
The probe initiated by the US Trade Representative (USTR) in August on US President Donald Trump’s orders is part of the US’ trade initiatives against China that could increase tensions between the two countries. The process could result in tariffs on China if the parties fail to strike a deal after the USTR completes its investigation and releases its results.