China prepares a trade war arsenal that takes aim at US companies – WSJ

China has engaged in discussions with European Union (EU) trade chief Maros Sefcovic, signaling a willingness to enhance trade, investment, and industrial cooperation between China and the EU, according to a Wall Street Journal report. Chinese officials have stated their preference for resolving disputes through consultation and negotiation. However, they affirmed their resolve to defend their interests should the United States persist in unilateral actions, characterizing U.S. tariffs as infringements upon the legitimate interests of all nations.
The ongoing trade tensions between the U.S. and China, initiated in 2018 with the imposition of trade barriers by the U.S. citing unfair trade practices, have involved retaliatory tariffs and a subsequent Phase One trade deal in 2020. Despite this agreement, tariffs remain in place, and the potential return of Donald Trump to the U.S. presidency has raised concerns about a resurgence of trade hostilities, including proposed tariff increases that could further disrupt global supply chains and impact inflation.