China: not defenseless in a trade war, likely to make concessions - BBH

According to analysts from Brown Brother Harriman, Chinese officials are taking the recent announcement from the US in “stride” and consider that they will take a “resist when possible, make concessions when necessary” approach. 

Key Quotes: 

“While the pundits are talking trade wars, Chinese officials are taking the latest US provocations in stride.  Pressure on China's trade practices are not new.  The US has been complaining about intellectual property violations since Bill Clinton was President.  China's trade practices have also raised the ire or US and Europe, which has resulted in tens of dozens of anti-dumping action.”
  
“By threatening the economic equivalent of "mutually assured destruction", the Trump Administration will likely win Chinese concessions. It seems that many of the concessions, like a better defense of intellectual property rights and a reduction of tariffs, are low hanging fruit, and actions Chinese officials were likely willing to make given their own domestic agenda.”

“China is not defenseless in a trade war, but many observers trying to game out the extent of its weapons lack imagination. They focus on agriculture or some other products, like big-ticket item airplanes. Some see the exchange rate as a possible tool and others have given some thought to the reduced buying of Treasuries, or even their sales. However, many of these actions could hurt China.”

“It seems as if Chinese officials are drawing the same insight as others are after Trump's first year in office:  Resist when possible, make concessions when necessary, avoid antagonizing needlessly. There seems to be a general acceptance that Trump represents an anomaly--a vocal minority of the political and economic elite--who won control of the levers of state, but their hold on power is tenuous at best and could in any event be circumscribed by the November mid-term elections.”