WSJ says “Xi Jinping’s capacity to engage in a prolonged economic warfare with the US”

The Wall Street Journal:

• China Has Readied a Trade-War Arsenal That Takes Aim at U.S. Companies

(gated)

In brief:

• A central thread running through (China’s) calculus is how to inflict hardship on companies that bank on their ties with the world’s second-largest economy

• Tools that Beijing has already used and is likely to expand include

  • export controls of critical materials American companies use to make chips and defense-related products
  • regulatory investigations designed to intimidate and penalize U.S. companies
  • blacklists intended to bar U.S. businesses from selling to China
  • authorities are preparing new ways to pressure American companies to give up their intellectual property or lose access to the Chinese market

• The toolbox underscores leader Xi Jinping’s capacity to engage in a prolonged economic warfare with the U.S.

This war appears it will get worse before it gets … worse.

This article was written by Eamonn Sheridan at www.forexlive.com.