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Title : China Prepares For U.S. Trade Sanctions And Penalties
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China Prepares For U.S. Trade Sanctions And Penalties

The People's Republic of China flag and the U.S. Stars and Stripes fly along Pennsylvania Avenue near the U.S. Capitol in Washington during Chinese President Hu Jintao's state visit, January 18, 2011. Credit: Reuters/Hyungwon Kang

CNBC: Trump is signaling he's about to lash out at China — here's what Beijing is thinking

* President Donald Trump is set to make a speech Friday hitting on Chinese trade and intellectual property practices.
* The official Chinese response has largely been critical — but subdued.
* Government officials told CNBC, however, that China is in wait-and-see mode.

China is bracing for a clash with the U.S. when President Donald Trump announces potentially aggressive trade measures against Beijing. White House officials told CNBC the president will make a speech on Friday targeting Chinese intellectual property and trade practices. Here is how people in China are reacting.

China's official response

The official Chinese response has largely been critical but subdued. On Thursday in Beijing, the Chinese Commerce Ministry played up the U.S.-China trade benefits, but dismissed the notion that China has not done enough to protect intellectual property.

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WNU Editor: China still thinks (and hopes) that everything will be honky-dory .... and many U.S. businesses in China are thinking (and hoping) the same thing. But there is a change in the air, and it will continue to escalate as long as trade imbalances, North Korea, South China Sea, and other disputes continue to fester and remain unresolved.

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