SMU Associate Professor of Finance Fu Fangjian commented that China’s decision to file a complaint with the World Trade Organisation (WTO), is a diplomatic move aimed at demonstrating Beijing’s commitment to upholding the international economic and trade system as well as global order. Assoc Prof Fu opined that US President Donald Trump’s recent move to impose a 10% tariff on Chinese goods is a tentative strategy of "crossing the river by feeling the stones," aimed at assessing whether this action will exacerbate inflation in the US. Additionally, the tariff hike on Chinese goods is not only lower than those imposed on Canada and Mexico but also far below the 60% tariff Trump had threatened during his election campaign. This gives the impression that the move is more symbolic than aggressive. As a result, Beijing may see no need for an immediate, heavy-handed response at this early stage of mutual probing, avoiding an all-out trade confrontation
