Ahead of President Trump's scheduled trip to Beijing, China is escalating pressure on the U.S., preparing legal tools for tit-for-tat retaliation against foreign companies it deems to be damaging Chinese interests.
The measures, announced by officials and state media, are meant to send a message that China won't be pushed around by other powers and suggests Beijing isn't willing to compromise its interests to placate Trump ahead of his planned May 14-15 visit.
The Iran war is further complicating relations between the two superpowers. Chinese leader Xi Jinping issued a veiled rebuke to Washington this week, telling foreign dignitaries visiting Beijing that the world can't return to the 'law of the jungle' in which big powers run roughshod over international law.
On trade, Beijing is responding to U.S. moves since the first Trump administration to curb China's access to advanced technology and encourage companies to seek alternatives to China-based supply chains. China's exports to the U.S. have declined, falling more than 26% year-over-year in March, as companies shift production of goods such as electronics and clothing to Southeast Asia and India.
New regulations released last week give Beijing more legal tools to resist such moves. Dated March 31, they empower authorities to investigate those who threaten China's access to vital resources or who drop Chinese suppliers in response to political pressure.
