If the long-running skirmishes between the US and China were to escalate into a trade war, China would try to occupy the moral high ground by portraying itself as a defender of free trade. At the time though, officials would use a variety of means that US policymakers don’t have at their disposal, including arbitrary regulatory checks and consumer boycotts, as well as tariffs to make life difficult for US firms attempting to sell to or operate in China. In this China Watch we consider the measures China would take. As usual, we also preview the upcoming data releases.
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