Beijing is prepared to deploy a series of measures to counter the impact of US president-elect Donald Trump’s return to the White House in January, a national security official said on Thursday.
The trade dispute between the US and China, initiated in 2018 during Trump’s first term as president, significantly reduced China’s economic and international clout, the official said on condition of anonymity.
Beijing is facing greater pressure than before as Trump’s return looms, the official added.
Photo: AFP
In anticipation of the incoming Trump administration sharply hiking tariffs to counter Chinese dumping, Beijing is prepared to launch retaliatory tariffs on US and European products, as well as to use administrative measures — tax reviews, accusations of intellectual property infringements, or citing its national security laws — to harass international companies, the source said.
China might even consider selling all of its US bonds, the source said.
Beijing might also use multilateral organizations to pressure the US, the official said, citing how China is pursuing membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) while the US is becoming more isolationist, the source said.
The CPTPP evolved from the Trans-Pacific Partnership, which was never ratified after the US withdrew from its during Trump’s previous administration.
China might dump its products on world markets, using the network built up by its Belt and Road Initiative and by deepening its control over those countries, the official said.
It could step up control over the East and South China seas, and the Taiwan Strait, and try to force the US to back down, to realize its goal of extending its influence over the region previously enclosed by the US’ “first island chain strategy,” the official said.
The source also cited a Center for Strategic and International Studies study warning that China could pass off routine patrols as military exercises to pressure the US, or call off exercises to show favor to the incoming Trump administration.
Beijing would step up commentary to raise doubts about the dependability of Trump and the US to drive a wedge between Taipei and Washington, the source said.
Lastly, China could step up relations with other authoritarian regimes in Russia, Iran and North Korea in an attempt to counter democratic countries, the official said.
Such measures could include persuading Iran and Pakistan to meddle in Middle East affairs while stepping up collaborations with Russia, the official said.
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