China’s toolbox to turn the retaliatory screws in trade tensions with the United States

Timothy Stratford is quoted in a South China Morning Post article regarding China's retaliatory options that might be considered if a trade war breaks out with the U.S. According to Stratford, there are a number of things that foreign companies could be worried about in terms of retaliatory action from China. “Some foreign companies may have a more difficult time getting licences to engage in business, or they may find themselves subject to more stringent compliance investigations launched against them."

Stratford adds that China has remained restrained in the face of Trump’s rhetoric, which he considers to be a wise move. “The Chinese government has been right to hold off and not to react too quickly to a particular statement, but instead wait to see how the statements evolve into systemic and overarching polices,” he says.