Trade war

Chinese Authorities Have Ample Weapons To Prevail If US Escalates Trade War

If a trade war is escalated by the US, the Chinese authorities will take all necessary measures to minimize the losses for Chinese companies and individuals. Nonetheless, the US, the world's largest economy with a GDP of approximately $19 trillion, has less endurance for a full-blown trade war.

China does not want a trade war with the US, which is one of its most important trade partners. But if US President Donald Trump starts a trade war, China will fight to the end to defend its interests.

If unfair action is taken by the US, China has various tools to use as countermeasures. Meanwhile, China is expected to be fully prepared for the escalation of trade friction by strengthening its ability to safeguard Chinese entities targeted by the US.

In an all-out trade war, offense and defense are equally important to winning.

The Trump administration said it will impose punitive tariffs on Chinese imports ranging from industrial robots and electric vehicles to locomotives and jet engines. If this measure is carried out, China can provide export-promoting subsidies for companies that export goods on the list.