mandag 5. august 2019

China has 'few good options' to hit back against new US tariffs

The trade war is back on. China on Friday slammed President Donald Trump's decision to slap a 10% tariff on $300 billion worth of goods, effectively taxing all Chinese exports to the United States. Beijing said it was ready for a fight. "China will have to take necessary counter-measures," a spokesperson for China's Ministry of Commerce said in a statement, adding that "all the consequences will be borne by the US."

Beijing may be able to cope with the fallout from an escalating fight between the world's two biggest economics, but it faces more constraints than Washington and will have to calibrate retaliation carefully. China "basically has very few good options," said Julian Evans-Pritchard, senior China economist at Capital Economics. "In terms of directly hitting back at the US, it's quite difficult to do it without hurting themselves." Here's what China could do next.