The nation's foreign exchange regulator began surveying companies in Shanghai in early February about the impact on cross-border trade of possible protectionist measures adopted by the U.S., two sources said on Tuesday.
The State Administration of Foreign Exchange is asking companies in Shanghai with large trading operations and cross-border payments with the U.S. whether they have U.S. production facilities, their tolerance for higher tariffs, and how they would deal with the higher tariffs, said one of the sources.
U.S. President Donald Trump has repeatedly threatened to slap higher tariffs on Chinese imports in retaliation for what he claims are unfair trade practices, though he has yet to follow through on the threats since taking office on January 20.
"It is still in the survey phase. Every foreign trade company's situation is different. If there really was a trade war, there will be pressure," said the above source.
The agency is also looking at the operations of U.S.-invested companies in China, including their business models and whether they will move production to other countries or divest from China.
