Alwaght- China is reviewing various scenarios of retaliating potential hostile acts by the US administration in trade issues.
According to report by Reuters, China's government has been seeking advice from its think-tanks and policy advisers on how to counter potential trade penalties from US President Donald Trump, getting ready for the worst, even as they hope for business-like negotiations.
The policy advisers believe the Trump administration is most likely to impose higher tariffs on targeted sectors where China has a big surplus with the United States, such as steel and furniture, or on state-owned firms.
China could respond with actions such as finding alternative suppliers of agriculture products or machinery and manufactured goods, while cutting its exports of consumer staples such as mobile phones or laptops, they said.
Premier Li Keqiang said last week that Beijing did not want to see a trade war with the US and urged talks between both sides to achieve common ground.
If the US and China have a trade war, American farmers could be the ones who take the biggest hit.
China is the second largest market for US agricultural exports, according to the US Department of Agriculture Foreign Agricultural Service. Of the $20.2 billion in farm exports to China in 2015, soybeans accounted for $10.5 billion.
Beijing also has other options including cancelling orders for Boeing orders and replacing them by Airbus while US auto and iPhone sales in China are expected to suffer a major setback.