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US and China could exchange sanctions on telecom, chips and agriculture in trade war skirmish: analysts

China could take aim at the United States’ agriculture sector if a US investigation into China’s intellectual property practices results in sanctions against Chinese telecom and semiconductor exports, analysts have warned.

Derek Scissors, a trade specialist at the American Enterprise Institute in Washington, said the US’ ongoing Section 301 investigation could justify sweeping sanctions against China’s telecom and semiconductor products, including consumer electronics.

Scissors said a US president could unilaterally impose sanctions or quotas, including a quota of zero, against imports into the United States for six months.

“If the US were to take such broad action, I suspect Chinese retaliation would be aimed at American agriculture,” he said.

Read more at South China Morning Post

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