Chinese state media warns retaliation against US tariffs could ‘become routine’

via scmp:

  • Taoran Notes commentary also seeks to play down expectations over possible meeting between Xi Jinping and Donald Trump in Japan later this month
  • It says Beijing is showing its determination when it comes to ‘genuine battle preparations’

 

Chinese state media has warned the countermeasures Beijing is taking against Washington’s increased tariffs and technology containment strategy could “become routine”.

In a commentary on Friday, Taoran Notes – a social media account affiliated with official newspaper Economic Daily – also sought to play down expectations that an anticipated meeting between the Chinese and US leaders later this month could get trade negotiations back on track.

It listed areas where China could strike back against the duties and other moves such as a ban on US companies supplying technology to

Huawei

. Those areas included exports of rare earths, which are used in nearly all hi-tech products, and its “unreliable” entities list.

“China is showing its determination and capability when it comes to genuine ‘battle preparations’, and these countermeasures will gradually become routine,” the commentary said.

“After that, every countermeasure [Beijing takes] will be more foreseeable and rules-based.”

Tensions have been rising between Washington and Beijing after trade talks stalled last month, with China in recent weeks announcing it would

State media – including People’s Daily, national broadcaster CCTV and Xinhua news agency – responded with a volley of criticism after US President Donald Trump abruptly raised tariffs to 25 per cent on US$200 billion worth of Chinese goods on May 10. Beijing retaliated by increasing duties on US$60 billion of American imports.

China has yet to give further information on which businesses could be affected by its “unreliable” entities list, announced on May 31, and what specific measures they would face. There has been speculation that it could include delivery services firm FedEx, which is being

investigated by China’s postal regulator

after Huawei accused it of unauthorised re-routing of its packages.

 

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