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Subject

The impact of US tariffs on China's Made In China 2025 industrial policy framework.

Significance

'Made in China 2025' has become a byword for US grievances against China's trade and investment policies. US tariffs against Chinese products are primarily aimed not at trimming the bilateral trade deficit, but at forcing China to abandon policies by which it hopes to challenge the US position as the global high-tech leader. As such, the tariffs target the high-tech sectors Beijing seeks to develop.

Impacts

China will step up efforts to reduce reliance on US suppliers.

Washington may press other countries to block Chinese investment or supplies of key components.

China will seek greater high-tech cooperation with Russia; Russia will oblige.

China may make greater use of cyberattacks in order to obtain advanced US technology.

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