Trade actions may backfire on American firms

Trade restrictions launched by the United States could cause huge losses for US companies operating in China, experts said.

The US is home to many multinational companies that have a global supply chain, and the current total value statistical method has distorted reality, said Long Guoqiang, vice-president of the Development Research Center of the State Council.

"The goods China exports to the US involve a considerable proportion of intermediate inputs from countries such as Japan and South Korea and even the US itself, in particular chip products," he said.