China’s low-key response to last week’s tariff announcement by President Trump reflects in part a desire not to exacerbate tensions further. But Chinese officials will also be aware that, while they have a number of options for retaliation, restrictions on imports from the US would have costs in China too. The limits on soybean imports that some have been threatening are a case in point: there simply aren’t enough soybeans in the world outside the US to meet China’s needs.
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