China to Retaliate Once Trump Wages Trade War Against Beijing
In anticipation of the upcoming inauguration of US President-elect Donald Trump on Jan. 20, China has been working on strategies that will help deal with any potential trade disputes with the US that could possibly arise after Trump is sworn it as the US' 45th president.
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The communist party mouthpiece, the Global Times, said in a commentary on Friday that if Trump starts to attack Chinese companies and goods once he assumes office, Beijing would not hesitate to retaliate by taking punitive measures against all US companies and industries operating in the Chinese market.
In a report by a news agency, Bloomberg, on Friday, China said that in the event Trump wages a trade war against China, the Asian giant might target US firms by imposing higher taxes or launch investigations and would drastically and largely cut back its purchase of US goods.
During Trump's presidential campaign sorties, he had repeatedly vowed to impose 45 percent in tariffs on all China-made goods as it accused Beijing of illegal trade practices. Trump had also branded China a "currency manipulator" and accused Beijing of robbing jobs from US workers.
To show that he was 'serious' in taking China to task, Trump has picked several anti-China critics as part of his cabinet.
The commentary said though that China's possible economic retaliation against the US is yet to be confirmed, the Chinese government said the claims are in sharp contrast with Chinese foreign policy of opening up its market to more foreign investment.
Vice Minister of the Ministry of Commerce, Wang Shouwen, pointed out on Friday that Beijing would highly unlikely impose strict restrictions on foreign investment, saying Trump may not deliver his campaign promises that include the imposition of higher tariffs on China-made goods after all.
A Chinese economic expert, Huang Yiping, on Saturday, however, stressed that Beijing should consider a potential falling out with the Trump presidency once it implements higher tariffs on Chinese goods.
He said that given Trump's anti-China stance and his protectionist trade policy rhetoric, Beijing should begin to prepare for more trade conflicts with the US under his presidency.
"If Trump targets Chinese goods for higher tariffs, it would certainly have a negative impact on trade, but it is still too early to tell if Trump will deliver on his campaign promises," Huang emphasized.