China Shifts Trade War Strategy, Targets U.S. Services and Industry
China has announced it will no longer respond to U.S. tariffs with further duties, calling President Donald Trump’s latest tariff hikes “a joke.”
Instead, Beijing is pivoting to broader, more strategic retaliation — hitting U.S. companies, services, and critical industries.
Tariffs Out, Non-Tariff Measures In
While the U.S. raised tariffs on Chinese goods up to 245%, China has shifted tactics. Recent actions include:
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Tighter export controls on rare-earth minerals.
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Antitrust investigations into U.S. firms like Google and DuPont.
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An expanded “unreliable entity” list, adding companies such as PVH and Illumina.
Beijing also now requires licenses for exporting materials used in semiconductors and military systems.
Boeing and U.S. Airlines in the Crosshairs
In a major move, China ordered its airlines to halt deliveries of Boeing aircraft and suspend purchases of U.S.-made aviation parts — adding to the pressure on the struggling American plane maker.
Services Sector Now in Focus
China is shifting pressure to the U.S. services sector, where the U.S. runs a large surplus. Recent measures include:
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Reducing U.S. film imports.
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Warnings against studying or traveling to the U.S..
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Targeting legal and consulting firms for monopoly investigations.
These moves threaten education, tourism, and Hollywood — all politically sensitive sectors.
Toward a Broader Decoupling?
Analysts warn China’s strategy marks a move from trade skirmishes to systemic separation. “We could see deeper decoupling not just in trade but in people-to-people ties and regulatory alignment,” said Jing Qian of the Center for China Analysis.
Despite the lower direct dollar impact of some measures, their long-term ripple effects could be significant.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
