ASSESSMENTS

Who Would Lose More in a U.S.-China War of Reciprocity?

Jan 18, 2018 | 00:28 GMT

U.S. President Donald Trump and Chinese President Xi Jinping leave a business leaders event in Beijing on Nov. 9, 2017. A Trump administration plan on trade could close off entire sectors of the U.S. economy to Chinese investment.

(NICOLAS ASFOURI/AFP/Getty Images)

Highlights

Depending on its implementation, the plan could close off entire sectors of the U.S. economy to Chinese investment.
It's still possible the Trump administration could ease its stance in response to U.S. pushback. It could also stand firm.
If the administration holds its course, China will undoubtedly push back. The question is how.

The United States spent 2017 laying the groundwork needed to aggressively pressure China on trade and investment in 2018. Now it appears the pressure is on. On Jan. 17, InsideTrade reported that the administration of U.S. President Donald Trump is contemplating setting up a system of reciprocity on Chinese foreign direct investment in the United States. Under that system, the United States would treat Chinese investment into U.S. sectors the same way China treats U.S. investment into its analogous sectors. It would fall to Chinese investors to prove their desired investments would be allowed under Chinese investment rules....

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