Boeing aircraft and U.S. soybeans may be among U.S. goods targeted by China if bilateral trade tensions escalate and Beijing retaliates against U.S. tariffs threatened by president-elect Donald Trump's administration.
Capital goods - including aircraft manufactured by Boeing, turbines for power generation and transportation equipment - are an 'obvious candidate' for retaliation, wrote Eurasia Group analysts Evan Madeiros and Michael Hirson in a report on January 18.
"Beijing will target sectors it believes will resonate politically with the Trump team, including sectors that touch Trump's political base," the analysts wrote.
Beijing would approach alternative suppliers in Latin America for agricultural goods and in Europe for commercial aircraft should trade relations with the U.S. sour, former U.S. ambassador to China Gary Locke told CNBC on Friday.
"Chinese airlines do not have to buy Boeing planes, they can buy Airbus," Locke said. "The list goes on and on, and that will cost American jobs, good paying jobs."