The Financial Times called the anticipated move “the trade diplomacy equivalent of a wooden club” and warned it could provoke “a full-blown trade war”. The [Chinese] state sector is becoming an increasing competitive problem and threat. It remains unclear when, how or even if Trump will challenge Beijing but reports suggest he could instruct his trade representative to launch a so-called “section 301” case. That would allow the US to unilaterally impose tariffs or other trade restrictions aimed at protecting US industries. Barshefsky predicted China would hit back by accusing the US of protectionism and claiming it was “the last man standing for an open global trading system”.

Source: The Guardian August 07, 2017 05:18 UTC