Donald Trump can outgun China on trade tariffs but Beijing has other ways to fight back
American companies operating in China might feel the brunt of any retaliatory measures, analysts say
Beijing said on Tuesday it will use “quantitative and qualitative” measures to hit back at US President Donald Trump’s act of “blackmail” in threatening to impose tariffs on US$200 billion worth of Chinese products.
The statement, by China’s Ministry of Commerce, suggests the government is considering options other than tariffs as its tit-for-tat trade row with Washington rumbles on.
Trump’s move hit China’s stock market hard as well as pushing Wall Street lower at the start of trade on Tuesday.
Shanghai stocks lost nearly 4 per cent to a two-year low, prompting China’s central bank governor urged investors to “stay calm”, adding that the central bank will work to keep systemic risks at bay.
“There are ups and downs in the stock market and so, investors should be calm and rational,” Yi Gang, governor of the People’s Bank of China, told official Shanghai Securities News, which was posted on the central bank’s website.
Wei Jianguo, a former vice-minister of commerce, said the ministry’s announcement meant it was likely that Beijing would now extend the range and duration of its countermeasures.