What could China have in its sleeve? »Manila Business Newsletter

By Agence France-Presse

The first shots were fired in a trade war between China and the United States that , according to experts, could be detrimental. The World Economy

The two superpowers on Friday imposed tariffs for billions of dollars of cross-border trade.

While US President Donald Trump dismissed warnings that trade frictions with powerful partners like China could hurt the United States, Beijing has other weapons in its arsenal alongside tariffs to cause damage ]

Tom Cruise movies, Starbucks coffee, iPhone X and Buick are all bestsellers in China and the authorities could find all kinds of ways to make them the best. difficult life, says Louis Kuijs, an Asian analyst at Oxford Economics. 19659007] China "has less ammunition in terms of imposing tariffs, but history shows that there are several other measures that could inflict suffering on US companies," said M Kuijs.

He cited "increased sanitary, fiscal and fiscal controls, delaying the importation of goods and the boycott of US products".

Chinese port authorities have already begun to increase inspections of pork and American cars, causing serious delays

Buick boycott

General Motors now sells more cars in China than 39 in the United States. and many other iconic American brands now derive much of the revenue from the rapidly growing Chinese market.

China could either tie these companies to the bureaucracy or encourage an effective boycott by Chinese consumers, according to experts.

Williams, chief economist for Asia at Capital Economics, said Beijing could hold a "propaganda campaign, which allows officials to stay away from the resulting sales disruption."

"In the past," said Williams, noting that similar campaigns against South Korea and Japan at times of political tension "have resulted in a 50% drop in car sales by these companies. countries in a single month. "

turned against South Korean retailer Lotte, who was forced to close three quarters of his stores in China after providing Seoul with land to deploy a US missile defense shield against which Beijing Opposes.

School & # 39; s out [19659007Chinacouldbegintolimitthenumberoftouristswhospendalotofmoneyandhave350000studentswhoequatetotheUnitedStatesofAmericawhichhasasignificantimpactontheAmericanmarket

Williams

China has already limited tour groups to Taiwan and to South Korea, noted the expert

. China may feel that American universities have limited power over the Trump administration and limiting the number of students could undermine efforts to improve China's technical and scientific capabilities. "

Boeing blow-out

Boeing sells a quarter of its The American aerospace giant is shoulder to shoulder with his European rival Airbus

That could be another pressure point because most Chinese airlines are under state control with their orders.

Although orders are planned for the next five years, the nationalized nationalist tabloid Global Times has already issued a warning, saying that Beijing could "adjust sales volumes."

devaluation

With its huge foreign exchange reserves, China holds about $ 1.2 trillion in US Treasury bonds and authorities reportedly began to slow down or halt their purchases.

Washington is a double-edged sword for Beijing because the dumping of bonds would cause self-inflicted losses.

Another weapon available Beijing is the yuan, tightly controlled by the central bank, that it could depreciate for

But again, this could be a self-inflicted injury, as this could cause considerable capital outflows from the China.

Julian Evans-Pritchard of Capital Economics said: "While a weaker currency could offset some of the economic damage caused by US tariffs, the broader risks for financial stability are not worth the trouble to be taken. "

Korean Cooperation

If economic weapons do not work, Beijing could turn to politics. Trump relies heavily on Chinese cooperation to contain Kim Jong Un's nuclear ambitions in North Korea, particularly in terms of maintaining sanctions.

Trump could suddenly find China less accommodating on this explosive issue if the trade war spreads.

: Beijing, China, Facts, Trade, United States, Weapons