Facing a Flurry of U.S. Sanctions, China Prepares to Hit Back

Published On Jan 17, 2025, 5:00 AM

With the upcoming inauguration of Donald Trump, China is preparing for potential economic confrontations. They have threatened investigations into American chipmakers and may impose duties on imports of industrial plastics while targeting one specific American retailer for inappropriate conduct. This escalation is seen as a direct warning to the incoming U.S. administration, indicating that China will not remain passive amidst growing tensions. Following similar aggressive actions by the Biden administration to curb China’s tech sector, these developments could instigate further trade disputes.

Stock Forecasts

AVGO

Negative

The rising tensions between the U.S. and China could severely impact American semiconductor companies, as retaliation may lower revenues and increase operational risks. Investors should be cautious, as these market dynamics can lead to volatility in tech stocks.

WMT

Negative

American retailers, especially those highlighted by China's investigations, could see their stock prices negatively affected due to escalating trade tensions and potential sanctions.

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