SHANGHAI/BEIJING (Reuters) – China should take “self-defense measures” against U.S. tariffs by offering subsidies to companies and industries that may suffer losses from trade frictions, the Chinese state-run tabloid Global Times said on Wednesday.
Chinese technology firms, in particular, could be treated unfairly and “become the victims of (U.S. President Donald) Trump’s trade war,” it said.
Washington is due to unveil restrictions on foreign investment in U.S. technology companies on Friday, and Trump said they would not just be confined to China.
The U.S. administration says China has misappropriated U.S. intellectual property through joint-venture requirements, unfair licensing policies and state-backed acquisitions of U.S. technology firms, a charge that Beijing denies.
China, which has pledged to further open up its market and economy this year, might additionally adjust its policies due to economic uncertainty arising from the trade friction, the Global Times said.
“China can offer export subsidies to Chinese companies under the WTO (World Trade Organisation) framework and provide policy support to them,” it said.
“High-tech industry is one key area where efforts should be made to protect Chinese companies from the attack launched by Trump.”