China may restrict/slow-down exports of parts in strategic industries if the US passes its USICA protectionist law
Going to be fun times. China is in big advantage in the emerging strategic industries
China experts say those reprisals may include deliberate disruptions in imported parts’ supplies for U.S. manufacturers and curbs on Chinese purchases of U.S. exports.
U.S.-based business groupings view Chinese retaliation as unavoidable and are bracing for it with a mixture of dread and resignation. “China is becoming much more aggressive. … They will go all the way to win,”
Instead, the Chinese government is likely to signal its anger by tapping the brakes on select exports essential to key U.S. industries, such as the automotive sector. Such intentional disruption of targeted supply chains will allow Beijing to retaliate with a degree of plausible deniability
To sum up, if the US wants to slowly decouple, tough luck, China will pull the plug (in its own way) first, in order to inflict the maximum possible damageChina could use those supply chains to try to inflict pain, and [because] the Chinese leadership sees the West as moving to reduce their dependence on China, adding uncertainty about Chinese supply won’t be overly costly for China because the U.S. policy direction is mostly set.”
Victor Gao Zhikai, chair professor at Soochow University and a frequent echo of Chinese government positions, two days later described USICA as a geopolitical “Tonya Harding syndrome — whacking the kneecaps of China trying to put China out of commission.” Gao warned that the blowback from USICA includes “a real possibility that down the road the China market is completely closed off for U.S. manufacturers.”
In case anyone thought that China is not doing anything, the above should be proof enough of the opposite.“When China says ‘tit-for-tat,’ it means ‘tit-for-tat,’” said Min Ye, associate professor of international relations at Boston University. “China’s [retaliatory] policy tools include purchasing orders, targeted sanctions against individuals and companies or a pause on ongoing [bilateral] dialogues.”
Going to be fun times. China is in big advantage in the emerging strategic industries