Q&A: What has China done so far? What could China do next?

By EMILY WANG FUJIYAMA Associated Press BEIJING AP A reordering of global trading relationships could be underway as the world s two largest economies clash and relations spiral into a business war On Friday Beijing raised its tariffs on U S goods from to starting Saturday after the U S pushed its tariffs on Chinese products to a total of Early on China retaliated against imports of American farm products like beef and pork and imposed export controls on strategically vital minerals It has targeted big companies like DuPont China and Google with antitrust investigations and reduced the number of Hollywood films shown in Chinese cinemas Experts say there are still more options if U S President Donald Trump keeps upping the ante Here s the latest on what China has done and what could come next What has China done so far Apart from higher tariffs export controls and retaliation against specific U S companies Beijing also has filed lawsuits at the World Commerce Organization It has issued a trip advisory telling its citizens to evaluate risks of visiting the United States in a time of deteriorating relations The China Film Administration which approves imports of Hollywood films limiting foreign films to a year commented it would appropriately reduce the import of American movies China requires that revenues from films shown be shared and is Hollywood s second largest sector China is also reaching out to other countries on dealing with Trump s tariffs and trying to shore up encouragement over business This week Commerce Minister Wang Wentao spoke with his counterparts at the European Union the -member Association of Southeast Asian Nations Saudi Arabia and South Africa Next week President Xi Jinping will journey to Vietnam Malaysia and Cambodia a trip that his Foreign Ministry announced would inject new momentum into regional and global peace and stability Is China going to raise tariffs further What else can it do China on Friday raised tariffs on U S goods to from starting Saturday If the US continues to play the tariff numbers meeting China will ignore it the Commerce Ministry revealed in a announcement It left room for further retaliation If the U S insists on continuing to substantially infringe on China s interests China will resolutely counterattack and fight to the end it explained The Chinese business activity was already sluggish before Trump began his tariffs war and analysts expect Beijing to look for methods to help allay the pain for the financial sector Premier Li Qiang has met with business leaders to signal regime encouragement for dealing with all kinds of uncertainties promising incremental policies according to the necessities of the situation State media have hinted that the Chinese central bank could cut interest rates and banks reserve requirements to free up more cash for lending Chinese sovereign wealth funds the Central Huijin and other state institutions have stepped in as part of what s known as the national band to promotion the markets buying up shares and raising their holdings of ETFs China s yuan could weaken making its exports more affordable but there are limits to how far Beijing is willing to depreciate the currency which would weaken outlay returns and strain markets further After the first round of the pact war starting in the Chinese leadership has learned how to deal with Trump and his organization says Chen Zhiwu professor at the Hong Kong University Business School There has been a lot of preparation for this type of transaction war to come up he reported Will there be talks between US and China Experts are watching for signs of whether negotiations might happen Chinese administrators have repeatedly announced they are open to talks but it s unclear whether Beijing is open to making any concessions The door is open for talks noted Commerce Ministry spokesperson He Yongqian but dialogue must be conducted on an equal footing and on the basis of mutual respect and China will fight to the end President Xi managed to limit the damage from Trump s first term when he launched tariff hikes and other sanctions to try to win more favorable agreement terms for U S products As head of the ruling Communist Party he has won praise from Trump himself for his stance as a strongman and has plenty of experience in political maneuvering China is unlikely to change its strategy stand firm absorb pressure and let Trump overplay his hand writes Daniel Russel vice president of international guard and diplomacy at the New York-based Asia Society Procedures Institute Beijing believes Trump sees concessions as a weakness so giving ground only invites more pressure How might the US tariffs affect Chinese companies Particular Chinese companies that saw the first agreement war during Trump s first administration have buffered the impact by selling to other markets and adjusting their supply chains Numerous have absorbed higher costs and accepted let profit margins shrink further Numerous exporters say they are still watching to see what comes next before deciding on whether to move or just quit A large share of Chinese exports to the U S are relatively cheap low-tech items like toys furniture appliances and apparel But China also imports various high-end products and components such as semiconductors aircraft and aircraft parts pharmaceuticals and industrial machines China has invested heavily in emerging advanced technologies such as the design and manufacturing of computer chips to help reduce its reliance on imported mechanism Yet it lags behind in key areas Across-the-board U S tariffs on higher-end products and semiconductors will hurt Associated Press writer Fu Ting in Washington contributed to this statement