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.