BEIJING, January 21. /TASS/. China has a sufficiently broad range of tools to counter the United States in case of a new trade war initiated by US President Donald Trump, Director of the Center for American Studies under the Fudan University Wu Xinbo told TASS.
"In case of a new trade war, the response of China will not be exclusively in the economic aspect," Wu said. "I believe we can also limit exports of certain strategic resources to the United States, including rare-earth metals, important minerals, drones and their components - China has many cards to repel," the expert noted.
Trump will resume high duties on Chinese products during his second term in office, which will lead to a new round of the trade war between China and the United States, the scholar said. "Such likelihood is very high," he added.
"In this situation, China needs to expand the domestic demand and the domestic market on one side and develop foreign trade, tap other markets and seek export diversification on the other side," Wu noted.
Trump actually waged the trade war with China during his first presidential term because of the strong imbalance in trade favoring China. Washington imposed duties on imports of Chinese goods in the amount of $370 bln but this did not result in elimination of the imbalance. Trump also intensified pressure on Chinese technology companies, particularly Huawei, under the pretext of alleged threats to US national security.