We think, in responding to Trump policies, China should:
- take a leading role;
- set a wise negotiation strategy by responding slowly and factoring in policy-changing risks;
- prepare for the worst-case scenario on trade negotiations and WTO is the appropriate organisation to exchange with;
- levy an export tax rather than the US levy a border adjustment tax to collect the revenues itself;
- offer what has been achieved as a gift to the Trump administration, such as China will not be a currency manipulator and will help with jobs.