WASHINGTON – The Chinese government designed its first concrete response toPresident Donald Trump’s recent wave of protectionist policies to inflictnoticeable political and economic pain upon the United States within theglobal trade rules.
China imposed tarrifs on a relatively modest $3 billion in Americanimports. But by hitting numerous products, including fruit, wine, ginsengand pork, that affect congressional districts across the country, Chinademonstrated that it can exert pressure within the American system.
The goal was to demonstrate resolve without escalation and to encouragedisadvantaged farmers and workers to complain to their electedrepresentatives. Beijing is prepared to engage in a slugging match, but itspreferred solution to the deepening trade dispute remains a diplomaticoutcome, analysts said.
“This is a negotiating tactic,” said Jeff Moon, a former U.S. assistanttrade representative for China. “They tried negotiating by hinting atconcessions. This is hinting at the sharp end of the stick.”
China also is being careful to act within the rules of the global tradingsystem that were established under U.S. leadership over the past sevendecades. As it broadens its global role, Beijing is eager to portray itselfas a responsible actor in contrast to a rogue United States that iswithdrawing from treaties and shunning multilateral cooperation.
China’s measured response thus far is meant to show that “they stand on themoral high ground here,” said Claire Reade, a former U.S. trade negotiatornow with Arnold & Porter.
Chinese officials previewed their $3 billion action in public commentsMarch 23, one day after Trump announced tarrifs on up to $60 billion inimported Chinese products, including aerospace, information technology andmachinery.
But Chinese officials billed their tariffs as a response to Trump’s earlierimport levies on steel and aluminum. Like the European Union, which alsoobjected to Trump’s metals tariffs, the Chinese rejected the president’sclaim that his actions on steel and aluminum were justified by nationalsecurity considerations.
Instead, China and the EU said the United States had acted on economicgrounds, seeking to protect its industries from an unwelcome flood ofimported products. In that event, under the rules of the World TradeOrganization, China was authorized to retaliate.