FILE PHOTO: China may ban imports of US poultry to counter US trade pressure. -Reuters
HONG KONG/BEIJING: China may consider taking a series of “big moves” to hit back against the United States as Washington raises tariffs on Chinese goods to 104 per cent, according to several influential Chinese commentators.
That will include expanding the trade dispute to include the services sector, where China runs a substantial deficit with the US, according to Ren Yi, a blogger better known by his online alias Chairman Rabbit, citing unnamed sources with inside knowledge of official discussions in Beijing.
“The trade war has been focused solely on the goods trade, which is unreasonable because, in essence, the US buys our goods and sells us services,” Ren told the Post.
Ren, who has over one million followers on the Chinese microblogging platform Weibo, said in an article on Tuesday (April 8) that Beijing still has six “remaining big moves” that it can use to counter US trade pressure.
Those measures include placing restrictions on purchases of services from US firms, “substantially” increasing tariffs on US soybeans, banning imports of US poultry and Hollywood films, suspending cooperation on controlling the illegal drug fentanyl and investigating US companies in China over intellectual property-related issues.
Another political commentator with over four million followers on Weibo, known as Niutanqin, posted a list of the same six suggested countermeasures on the same day. The account is run by a senior journalist at Xinhua, the state-run Chinese news agency.
China can target America’s services sector in a variety of ways, such as by restricting US firms from taking part in Chinese government procurement processes or limiting cooperation between Chinese companies and US law firms and consultancies, according to Ren.
“In the service trade sector, China has significant room for countermeasures because … the US economy is largely driven by services,” he said. “I believe countermeasures are also about sending a message – the significance of the move itself matters.”
Ren declined to disclose the source of his information.
In 2024, China ran a US$31.84 billion bilateral deficit in services with the US, with its imports reaching US$54.6 billion and exports totalling US$22.7 billion, according to the US Bureau of Economic Analysis.
Any such moves by Beijing would run counter to its recent pledges to “open its door wider and wider” to attract and retain foreign investment amid worsening geopolitical tensions.
Earlier this year, China outlined a plan to open up more parts of its economy to foreign investors, including service sectors such as telecommunications, healthcare and education.
Beijing may feel able to ban US films because Hollywood productions have been steadily losing market share in China, with Chinese viewers often disliking the “excessive ideological focus and lack of innovation” in blockbusters such as Disney’s new version of Snow White, Ren said in his article.
“This is something many in the industry have long called for. The film industry’s structure is evolving, audience tastes have shifted, and Hollywood isn’t as popular as it used to be, right?” Ren said.
China’s Ministry of Foreign Affairs responded to the article on Tuesday.
“We generally do not comment on online remarks,” said spokesperson Lin Jian during a press conference in Beijing.
“As for China’s position, I believe I have already made it very clear. We will continue to take resolute and forceful measures to safeguard our legitimate rights and interests,” Lin said. - South China Morning Post
Save 30% for ads-free and full access now!
