Chinese retaliatory measures are also not confined to tariffs.
“China can bar exports to the US of critical minerals, as well as ban exports of products unique to China which will greatly impact the US, such as antibody precursors used by pharmaceutical firms which come exclusively from China,” said Okun.
He further noted that China could also use its anti-foreign sanctions law to target specific companies, citing Skydio as a recent example.
Skydio is the largest drone manufacturer in the US. It was one of three American companies sanctioned by China in October 2024 over US weapons sales to Taiwan.
China can make life miserable for big American multinationals that are very reliant on the Chinese market, said Roberts from the Atlantic Council, citing Apple, Intel, and Qualcomm as potential targets.
Ultimately, analysts agree that at this point, Beijing appears content to play the long game as Trump 2.0 makes its presence felt around the world.
“I think the retaliation is not aggressive, as China only targets some US products, in response to the US tariff on all China’s exports to the US. This is likely only the beginning of a long process for the two countries to negotiate,” said Zhang Zhiwei, president and chief economist of Pinpoint Asset Management.
“The latest development of negotiations between the US and its neighbours show there is hope to de-escalate some time in this process, though the road ahead may be bumpy.”
Olson from ISEAS-Yusof Ishak Institute said China understands this will be a “protracted dance”.
“There’s no need to rush a more forceful response.”
Source: CNA
