Aircraft
China hasn’t been shy about threatening U.S. corporate interests. The Global Times warned in late 2016 that a trade war would have economic consequences. “Boeing orders will be replaced by Airbus,” the Communist Party newspaper said in an editorial.
President Xi Jinping gave Boeing a $38 billion order during a 2015 plant visit in Seattle.
Services
The U.S. recorded a $38 billion services trade surplus with China in 2016. Some of the leading services exports from the U.S. to China include travel; intellectual property, such as trademarks; and computer software, according to the U.S. Trade Representative’s Office.
Education
China could restrict the number of students who go to U.S. universities, hurting their funding at a time when an aging population has resulted in declining enrollment at many American schools.
Forex
China could seek to depreciate the yuan as a counter-measure, according to Wen Wang, executive dean of the Chongyang Institute for Financial Studies at Renmin University. A weaker yuan would make Chinese exports more competitive, and currency manipulation is something Trump and his allies have fumed about in the past.
“China has a lot of policy choices in its tool box,” Wang said. “China is keeping patience and waiting now, as we are well known for the strategy of gaining mastery by striking only after the enemy has struck.”
This article was provided by Bloomberg News.