Chinese state media have praised some U.S. firms for “strong collaboration” amid fears of a trade war.
This commentary is reminiscent of how tensions with the U.S. were covered by Chinese newspapers during Donald Trump’s first presidency.
Trump, who takes office on January 20, said on Monday that he would impose a 10% tariff on Chinese goods so that Beijing does more to stem the flow of Chinese-made chemicals powering an opioid epidemic in the United States.
He has also threatened tariffs in excess of 60% on Chinese goods while on the campaign trail.
During Trump’s first term, corporate executives and foreign investors scoured Chinese state media for signals.
By making this effort, the investors tried to understand which U.S. firms might be in favour and which might be penalised as trade tensions ratcheted up.
The state-owned Global Times late on Wednesday praised Apple,Tesla, Starbucks and HP for strong collaboration with Chinese partners.
“U.S. politicians need to pay attention to and respect the evident willingness of American businesses for economic and trade cooperation by tailoring suitable policy environments for
enterprises,” it said.
The China Daily also noted that Morgan Stanley received regulatory approval in March to expand its China operations, citing this as evidence of foreign financial firms’ enthusiasm for investing in China.
The U.S.-Sino trade war during Trump’s first term saw China threaten to ban U.S. companies from importing, exporting and investing in China with the creation of the “Unreliable Entity List”.
At the time, Global Times reported the list would target U.S. companies such as Apple, Cisco Systems and Qualcomm.
But China never followed through on the threat and to date the list has only included U.S. companies involved in the sale of arms to Taiwan.
“Neither side was good about communicating policy directly, so business was busy looking at the tea leaves and trying to separate signal and noise in traditional and social media,” said a Beijing-based American executive.
The executive was also in China during Trump’s first term, spoke on conditions of anonymity.
Bo Zhengyuan, a Shanghai-based partner at consultancy Plenum, said he expected Beijing would not rush to use tools like the Unreliable Entity List in the immediate wake of any formal tariff announcement once Trump is in power, given the weak state of the Chinese economy.
But Beijing could retaliate later if it felt U.S. policymakers were harming China’s commercial interests.
“There was collateral damage last time, and there will be collateral damage this time. But I think the Chinese government, given the foreign investment situation here, is mindful that this kind of tactic will have some backlash,” he added.
During Trump’s first term, Chinese authorities did not often make direct official comments on the trade war.
Authorities in mainland China this week have yet to make direct comment on the 10% tariff promised by Trump, although a Chinese embassy official in Washington has said no one will win a trade war.
Only 47% of U.S. firms were optimistic about their five-year China business outlook, a September survey by the American Chamber of Commerce in Shanghai showed.
(With inputs from Reuters)
