Trump action demands strong response

In an attempt to stem China's "economic aggression", US President Donald Trump signed a memorandum imposing large-scale trade sanctions on China, including restrictions on Chinese direct investment and tariffs of up to $60 billion on Chinese imports. The tariffs have also been slapped under Section 301 of the US Trade Act of 1974 that deals with intellectual property policies and practices.

Speaking in the White House on Thursday, Trump said the tariffs were part of an effort to restore fairness to the global market, noting that China imposes a 25 percent tariff on US cars while the US duty on Chinese cars was only 2 percent. "They charge us, we charge the same thing," he said. By imposing such punitive tariffs on Chinese imports, Trump has shifted public attention from the US' domestic problems to the trade dispute with China to garner more public support at home.

However, a trade war may not necessarily be a bad thing for China, because despite being the main target of anti-dumping and anti-subsidy protectionist measures over the past decades, China has become the world's largest manufacturer and exporter, and the second-largest economy. A trade war declared by the US is also unlikely to stop China from becoming a stronger economic power.