China has prepared countermeasures in case of increased trade competition with the United States

China has prepared effective countermeasures in case the trade standoff with the United States intensifies under the leadership of new President Donald Trump.

During Trump's first term, Beijing was not prepared for Washington's tough moves, including the imposition of increased tariffs and tighter controls on Chinese investments. However, over the past eight years, China has significantly strengthened its position by passing laws that allow foreign companies to be blacklisted and restrict U.S. access to critical supply chains.

Today, Beijing has legislative tools to counter sanctions imposed by other countries, and has compiled a «list of unreliable organizations» that undermine China's national interests. In addition, the expanded law on the control of exports of dual-use goods allows China to use its dominant position in global markets for the supply of key resources as an instrument of pressure.

A number of analysts believe that many underestimate the possible damage that China can cause to the US economy. An example is the recent ban on the supply of components for the largest American drone manufacturer Skydio, which supplies equipment for Ukraine as well. These sanctions make it difficult to access critical components needed for production.

After winning the election, Donald Trump should succeed Joe Biden in January 2025. In his election campaign, he promised to abolish the most-favored-nation status in trade with China, which will allow any tariffs to be imposed, and also announced his intention to "divide" Russia and China in order to weaken their strategic alliance.