Business group: China preparing to retaliate on trade

Markets Associated Press

  • FILE - In this Feb. 15, 2015, file photo, the Space Needle towers in the background beyond a container ship anchored in Elliott Bay near downtown Seattle. A board member of the American Chamber of Commerce in China, Lester Ross, says China is preparing to retaliate if U.S. President-elect Donald Trump carries out promises to impose sanctions on Chinese goods. (AP Photo/Elaine Thompson, File)

    FILE - In this Feb. 15, 2015, file photo, the Space Needle towers in the background beyond a container ship anchored in Elliott Bay near downtown Seattle. A board member of the American Chamber of Commerce in China, Lester Ross, says China is ... preparing to retaliate if U.S. President-elect Donald Trump carries out promises to impose sanctions on Chinese goods. (AP Photo/Elaine Thompson, File) (The Associated Press)

  • FILE - In this Wednesday, Nov. 9, 2016, file photo, a Chinese man reacts near a board showing the Shanghai Stock Exchange Composite Index at a brokerage in Beijing, China. A board member of the American Chamber of Commerce in China, Lester Ross, says China is preparing to retaliate if U.S. President-elect Donald Trump carries out promises to impose sanctions on Chinese goods. (AP Photo/Ng Han Guan, File)

    FILE - In this Wednesday, Nov. 9, 2016, file photo, a Chinese man reacts near a board showing the Shanghai Stock Exchange Composite Index at a brokerage in Beijing, China. A board member of the American Chamber of Commerce in China, Lester Ross, says ... China is preparing to retaliate if U.S. President-elect Donald Trump carries out promises to impose sanctions on Chinese goods. (AP Photo/Ng Han Guan, File) (The Associated Press)

An American business group says China is preparing to retaliate if U.S. President-elect Donald Trump imposes sanctions on Chinese goods.

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A board member of the American Chamber of Commerce in China, Lester Ross, said Wednesday that Beijing "is preparing to take steps in retaliation" if Trump acts.

Ross said Beijing already has toughened its stance by imposing higher anti-dumping duties on a U.S.-made agricultural chemical than Chinese regulators recommended.

Trump, whose inauguration is Friday, has promised to raise import duties on Chinese goods to 45 percent and declare Beijing a currency manipulator, moving toward imposing other penalties.

Chinese President Xi Jinping, in an implicit rebuke to Trump, issued a ringing defense of free trade in a speech Tuesday and warned a "trade war" would harm all countries involved.