President-elect Donald Trump's trade and foreign policy team is taking a hawkish stance toward China.
"The Trump administration's actions may be seen or may be interpreted as economic war," Scott Kennedy, senior advisor at the Center for Strategic and International Studies, told reporters in Beijing Thursday."If they are interpreted in that way, China might have a much more vigorous response, not limited to tariffs."
During Trump's first term, the Chinese government retaliated against U.S. tariffs by imposing its own tariffs on U.S. imports. James McGregor, a business consultant on China for three decades, said he sees Beijing using its leverage on U.S. agricultural purchases if it feels pressed this time, too. The business climate in China has tightened meaningfully since Trump's first term. Despite the Chinese leadership's stated efforts to welcome international companies, AmCham China's 2024 Business Climate Survey Report found 39% of companies polled felt less welcome in China.There's also the risk of legal and regulatory changes in China that could threaten U.S. companies.