China FX regulator surveying Shanghai firms

Vehicles drive on the Fourth Ring Road during the smog in Beijing

Vehicles drive on the Fourth Ring Road during the smog in Beijing

Published Feb 14, 2017

Share

Shanghai - China's foreign exchange

regulator began surveying firms in Shanghai in early February

about the impact on cross-border trade of possible protectionist

measures by the United States, two sources said on Tuesday.

The State Administration of Foreign Exchange (SAFE) is

asking firms with large trading operations and cross-border

payments with the United States whether they have US production facilities, their tolerance for higher tariffs, and

how they would deal with the higher tariffs, said one of the

sources.

US President Donald Trump has repeatedly threatened to

slap higher tariffs on Chinese imports in retaliation for what

he claims are unfair trade practices, though he has yet to

follow through on the threats since taking office on Jan. 20.

"It is still in the survey phase. Every foreign trade firm's

situation is different. If there really was a trade war, there

will be pressure," said the above source.

Read also:  Too big to fail: China maps out its Trump strategy

Reuters was not immediately able to reach SAFE's Shanghai

office for comment.

SAFE is also looking at the operations of US-invested

firms in China, including their business models and whether

those firms will move production to other countries or divest

from China.

REUTERS

Related Topics: