How China Will Respond to the Extra 50% Tariff?

Xinhua's "Niu Tan Qin" Outlines Six Strategic Countermeasures Available to China

Clearly, Trump is furious about the Chinese retaliation measures announced last Friday, prompting his threat of an additional 50% tariff.

Prominent Chinese internet opinion leader Liu Hong, also known as "Niu Tan Qin" (牛弹琴), has outlined potential responses. As the Deputy Editor-in-Chief of Xinhua Net and Director of the Social Media Communication Center, Liu carries a significant influence on the Chinese Internet and is well-connected with various departments.

His most recent analysis revealed that China has prepared six specific countermeasures to address these additional tariffs. This content is highly similar to that of another well-known Chinese social media account, "Tuzhuxi" (Chairman Rabbit). Zichen Wang has the English ver for that. Below is the full piece.

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Link: https://www.sohu.com/a/881202172_374379?scm=10001.325_13-109000.0.0.5_32&spm=smpc.channel_248.block3_308_NDdFbm_1_fd.1.1744093847055VKctxHC_324

Regarding countermeasures against US tariffs, we have received some latest news

The situation is infuriating. On April 7, Eastern Time, the U.S. threatened to impose an additional 50% tariff on Chinese goods. Today (April 8) at 8:48 AM, the spokesperson for the Ministry of Commerce clearly stated, "If the U.S. implements escalated tariff measures, China will resolutely take countermeasures to protect its own interests."

How to respond? We will counter every move. China doesn't provoke trouble, but it's not afraid of trouble either. Regarding specific counter-tariff measures against the U.S., we have also received some latest news that China has prepared at least 6 major countermeasures.

1. Significantly increase tariffs on U.S. soybeans, sorghum, and other agricultural products.
   According to sources, in view of recent U.S. bullying behavior, China is considering significantly increasing tariffs on U.S. soybeans, sorghum, and other agricultural products.

2. Ban U.S. poultry imports to China.
   Sources indicate that given the frequent outbreaks of avian influenza in the United States, relevant authorities strongly recommend that China prohibit the import of U.S. poultry to ensure the food safety of the Chinese people.

3. Suspend China-U.S. fentanyl cooperation.
   It has been revealed that due to the U.S. threatening to impose an additional 50% tariff again, the Chinese government is considering stopping fentanyl cooperation with the U.S. Simply put, the U.S. completely disregards China's humanitarian assistance, not only fails to understand China's sincerity and goodwill, but also engages in various smears, blame-shifting, and responsibility-pushing, which has seriously damaged the foundation of China-U.S. fentanyl cooperation.

4. Countermeasures in the service trade sector.
   Sources also revealed that this includes restricting US companies from participating in procurement and limiting business cooperation such as legal consulting services. The US has long maintained a trade surplus with China in services, and the US government's so-called "reciprocal tariffs" undoubtedly bring a serious crisis to US service exports that currently enjoy a huge surplus.

5. Ban imports of American films.
   According to relevant experts, in view of US threats to escalate tariffs on China, relevant departments are studying reducing or even prohibiting the import of American films.

6. Investigate intellectual property benefits of US companies in China.
   According to sources, given the enormous monopolistic benefits that relevant US companies have obtained in China, relevant departments are studying conducting investigations into the above situation.

Simply put, courtesy demands reciprocity. There are no winners in a trade war, and protectionism leads nowhere. Pressure and threats have never been the right approach to dealing with China.

I always feel that this is a great game of strategy, a blessing not a curse. If trouble is inevitable, then if this is the challenge that China must face in its development process, we must confront it bravely. We need to remain calm, clear-headed, and above all, confident. We haven't closed the door to negotiations, but we won't harbor false hopes either. Instead, we have made various preparations to cope with the impact.

After all, China today is no longer the China of 100 years ago, nor the China of 40 years ago, or even the China of 4 years ago. We have weathered numerous storms. We clearly know that we still face many challenges and difficulties, but we are more convinced that we stand on the right side of history. With unity between leadership and people, openness and inclusiveness, solidarity with all forces that can be united, and firmly doing our own work well—what does China have to fear?

Finally, I must say, in this world, what goes around comes around. The storm that the tariff war will bring to the United States has only just begun.