China plans to target American firms if Trump imposes tariffs on China

The US president's possible imposition of tariffs on China could mean losses for American business

Chinese officials have warned that they will retaliate against American companies if President Trump imposes tariffs on China, an American business group said on Tuesday, with airplanes and agricultural products among the likely targets.

The warning, issued by the American Chamber of Commerce in China, came just hours before Trump was expected to address the issue during his State of the Union address. The Trump administration is investigating whether it should impose a series of trade actions against China, in areas like technology and intellectual property theft as well as in traditional areas of trade disputes like steel and aluminum.

In December, Trump included economic challenges posed by China as part of his national security blueprint, vowing that he would pressure China, the world’s second-largest economy, on trade.

Chinese officials have told American business representatives that they are prepared to push back, said William Zarit, the chairman of the American Chamber of Commerce in China. “I have been told by certain officials that yes, definitely, there will be retaliation,” he said at a briefing in Beijing, to announce the findings of the group’s 2018 business climate survey.

“What we have urged our interlocutors is that if there is some kind of tariffs, and if the Chinese do want to retaliate, that they do so maturely and with precision, so as not to adversely affect their own economy,” he said. The relationship between President Trump and President Xi Jinping of China got a promising start last year at Mar-a-Lago, but this year ties between the world’s two largest economies could be rocky. Of particular concern are trade disputes and a longstanding argument over how to handle a nuclear-armed North Korea.  Last week, the Trump administration unveiled tariffs on imports of solar panels and washing machines — industries dominated by Chinese and South Korean businesses. 

If China does strike back, the two biggest likely targets would be the agriculture and aircraft industries, said Lester Ross, chairman of AmCham China’s policy committee. 

US-China relation hits rocky patch

• Trade disputes and a longstanding argument over North Korea are serious concerns
• Last week, Trump admin unveiled tariffs on imports of solar panels and washing machines, which are dominated by China
• If China strikes back, agriculture and aircraft industries would get affected the most in US
• China imported $21.4 bn in American agricultural products in 2016

@2018 The New York Times News Service