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BEIJING – China's options to retaliate in its spiraling dispute with Washington, DC
Until now, Beijing has stuck to mirroring President Trump's tariff threats. But it does not matter how much it's done in Washington DC
Beijing has other ways to inflict pain. The Commerce Ministry said that it would adopt "comprehensive measures," suggesting it might strike a wider range of American interests. That includes possible harassment of automakers, retailers or other American companies that depend on China to drive revenue.
Other options include selling US government debt or disrupting diplomatic efforts over North Korea, but those might also hurt Beijing's interests.
Friday, Washington taxed 25 percent tariffs on $ 34 billion worth of Chinese goods in Beijing.
A $ 500 billion statement by Trump said the total amount of goods affected exceeded $ 500 trillion, or more than China's 2017 exports to the United States. look at some of China's options:
TARGETING AMERICAN COMPANIES
China's state-dominated and widely regulated economy gives an opinion to an arsenal of tools to disrupt US companies by withholding licenses or launching tax, anti-monopoly or other investigations. Also open to retaliation are services such as engineering and logistics in which the United States runs a trade surplus.
"The US focus is on goods, while China could very well look at services, China, "said Taimur Baig, chief economist for DBS Group.
In one prominent case, US chipmaker Qualcomm Inc. has agreed to buy $ 44 billion acquisition of NXP Semiconductors.
China's new state-controlled media [19809002] Last year, Beijing, destroyed destroyed Korean retailer Lotte's business in China after the company sold in South Korea to the Government of China for an anti-missile system.
Beijing closed most of Lotte's 99 supermarkets and other outlets in China. Seoul, China, China Lotte gave up its operations in China.
FINANCIAL LEVERAGE
Nationalists point to China's $ 1.2 trillion holdings of U.S. government debt as leverage. Could be influenced by the United States of America
China's yuan has sagged against the dollar this year, which may require the central bank to intervene in currency markets.
To get the dollars it needs, the People's Bank of China might "become a net seller of US Treasuries," said Carl B. Weinberg of High-Frequency Economics in a report.
"Punishing the US Treasury market is one of the China, United States of America, United States of America, United States of America, United States of America, United States of America, United States of America withdrawal from the Paris climate pact.
Trump's unilateral actions have allowed China to position itself as the most-closed major economy. That could help the world of trumpeting for the world trade organization.
"China could strike a common ground with the EU, Canada, Japan and other economies impacted by the US tariffs," Citigroup economists Li Gang Liu, Xiaowen Jin and Xiangrong Yu said in a report.
More broadly, Chinese commentators have suggested Beijing also could disrupt diplomatic work over North Korea's nuclear and missile programs or other initiatives. This article was previously published under Uncategorized
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