BEIJING- China is running out of options to strike back at the United States without affecting its own interests, as Washington increases pressure on Beijing to correct trade imbalances in a challenge to China's state-led economic model.
According to China, this week it would impose higher tariffs on most U.S. imports on a revised $60 billion target list.
That's a much shorter list compared with the $200 billion of Chinese products on which Washington has hiked tariffs.
Agreeing to U.S. demands to end subsidies and tax breaks for state-owned firms and strategic sectors would also overturn China`s state-led economic model and weaken the Communist Party`s grip on the economy, they said.
"We still have ammunition but we may not use all of it," said a policy insider, declining to be identified due to the sensitivity of the matter. "The purpose is to reach a deal acceptable to both sides."
The State Council Information Office, finance ministry and commerce ministry did not immediately respond to Reuters` requests for comment. Of the retaliatory options available to China, none come without potential risks.