The New Ways China Can Fire Back If Trump Starts Trade War Again

China wields new powers as it confronts the prospect of another trade conflict with the US, expanding its retaliatory reach in recent years to include tools capable of wreaking havoc on global commerce and finance.

Six years after Donald Trump started the first trade war with China, the US president-elect has named a series of China hawks to his administration and threatened 60% tariffs on Chinese goods, a level that would decimate trade between the two countries. The dilemma for China now is that its sizable trade surplus with the US means any direct countermeasures may have limited impact.

Donald Trump and China’s President Xi Jinping in 2017.

Photographer: FRED DUFOUR/AFP