China’s Retaliation Tool Kit

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Trump has talked about taking a hard line on China. In response, the Chinese government would likely retaliate against U.S. tariffs by imposing tariffs on U.S. imports. A tit-for-tat tariff battle could result in as many as 801,000 fewer U.S. jobs by 2025, as a permanent revenue loss forces businesses to slash jobs and investment plans.

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Another tactic China could deploy is to tighten its export control regulations, which would likely target critical metals needed for America’s clean energy and semiconductor sectors. One example is graphite, which is super important since good graphite is necessary for our electric cars and artificial intelligence.

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Lastly, China could make operating in the country less safe through anti-foreign sanctions and anti-espionage laws. Even before the election, Beijing has already shown signs of targeting certain American companies under this law.