Companies bracing for China's retaliation in tariffs dispute

BEIJING (AP) — Businesses were bracing Monday for Beijing's retaliation against President Donald Trump's escalation of a tariff battle that threatens to disrupt a Chinese economic recovery.

Regulators threatened "necessary countermeasures" in response to Trump's increase in tariffs Friday on $200 billion of Chinese imports. But three days later, Beijing had yet to say what it might do.

In previous cases, China imposed tit-for-tat penalties immediately.

A foreign ministry spokesman said Monday he had gotten no details about Chinese plans or high-level contacts since negotiations ended Friday without a deal.

"We are determined and capable of safeguarding our legitimate rights and interests," said the spokesman, Geng Shuang. "We hope the United States will meet China halfway to address each other's legitimate concerns."

China is running out of U.S. imports for penalties due to their lopsided trade balance. Regulators have targeted American companies in China by slowing down customs clearance for shipments and processing of business licenses.

Officials appeared to be studying the potential impact on China's economy before picking their next steps, said Jake Parker, vice president of the U.S.-China Business Council. Officials might be worried companies may shift operations out of China in response to "aggressive retaliatory actions," he said.

"I assume this goes fairly high within China's government before retaliatory actions are settled upon," said Parker.

Additional penalties would hurt exporters on both sides, as well as European and Asian companies that trade between the United States and China or supply components and raw materials to their manufacturers.

The increases already in place have disrupted trade in goods from soybeans to medical equipment and sent...